Correlation Between CVS Health and DXC Technology
Can any of the company-specific risk be diversified away by investing in both CVS Health and DXC Technology 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 CVS Health and DXC Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CVS Health and DXC Technology, you can compare the effects of market volatilities on CVS Health and DXC Technology 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 CVS Health with a short position of DXC Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of CVS Health and DXC Technology.
Diversification Opportunities for CVS Health and DXC Technology
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CVS and DXC is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CVS Health and DXC Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DXC Technology and CVS Health 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 CVS Health are associated (or correlated) with DXC Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DXC Technology has no effect on the direction of CVS Health i.e., CVS Health and DXC Technology go up and down completely randomly.
Pair Corralation between CVS Health and DXC Technology
If you would invest 93,321 in CVS Health on November 4, 2024 and sell it today you would earn a total of 23,879 from holding CVS Health or generate 25.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
CVS Health vs. DXC Technology
Performance |
| Timeline |
| CVS Health |
| DXC Technology |
CVS Health and DXC Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CVS Health and DXC Technology
The main advantage of trading using opposite CVS Health and DXC Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CVS Health position performs unexpectedly, DXC Technology 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 DXC Technology will offset losses from the drop in DXC Technology's long position.| CVS Health vs. Lloyds Banking Group | CVS Health vs. Delta Air Lines | CVS Health vs. Southern Copper | CVS Health vs. GMxico Transportes SAB |
| DXC Technology vs. Lloyds Banking Group | DXC Technology vs. Ameriprise Financial | DXC Technology vs. First Majestic Silver | DXC Technology vs. Hoteles City Express |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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