Correlation Between Contagious Gaming and CVS HEALTH

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Can any of the company-specific risk be diversified away by investing in both Contagious Gaming and CVS HEALTH at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Contagious Gaming and CVS HEALTH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Contagious Gaming and CVS HEALTH CDR, you can compare the effects of market volatilities on Contagious Gaming and CVS HEALTH and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Contagious Gaming with a short position of CVS HEALTH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Contagious Gaming and CVS HEALTH.

Diversification Opportunities for Contagious Gaming and CVS HEALTH

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Contagious and CVS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Contagious Gaming and CVS HEALTH CDR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CVS HEALTH CDR and Contagious Gaming is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Contagious Gaming are associated (or correlated) with CVS HEALTH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CVS HEALTH CDR has no effect on the direction of Contagious Gaming i.e., Contagious Gaming and CVS HEALTH go up and down completely randomly.

Pair Corralation between Contagious Gaming and CVS HEALTH

If you would invest  1,367  in CVS HEALTH CDR on September 3, 2024 and sell it today you would earn a total of  111.00  from holding CVS HEALTH CDR or generate 8.12% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy95.24%
ValuesDaily Returns

Contagious Gaming  vs.  CVS HEALTH CDR

 Performance 
       Timeline  
Contagious Gaming 

Risk-Adjusted Performance

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Weak
 
Strong
Very Weak
Over the last 90 days Contagious Gaming has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Contagious Gaming is not utilizing all of its potentials. The recent stock price fuss, may contribute to near-short-term losses for the sophisticated investors.
CVS HEALTH CDR 

Risk-Adjusted Performance

2 of 100

 
Weak
 
Strong
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in CVS HEALTH CDR are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, CVS HEALTH is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Contagious Gaming and CVS HEALTH Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Contagious Gaming and CVS HEALTH

The main advantage of trading using opposite Contagious Gaming and CVS HEALTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Contagious Gaming position performs unexpectedly, CVS HEALTH can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in CVS HEALTH will offset losses from the drop in CVS HEALTH's long position.
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The idea behind Contagious Gaming and CVS HEALTH CDR pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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Check out your portfolio center.
Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.

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