Correlation Between CVS HEALTH and Mawson Gold
Can any of the company-specific risk be diversified away by investing in both CVS HEALTH and Mawson Gold 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 Mawson Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CVS HEALTH CDR and Mawson Gold Limited, you can compare the effects of market volatilities on CVS HEALTH and Mawson Gold 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 Mawson Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of CVS HEALTH and Mawson Gold.
Diversification Opportunities for CVS HEALTH and Mawson Gold
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between CVS and Mawson is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding CVS HEALTH CDR and Mawson Gold Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mawson Gold Limited 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 CDR are associated (or correlated) with Mawson Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mawson Gold Limited has no effect on the direction of CVS HEALTH i.e., CVS HEALTH and Mawson Gold go up and down completely randomly.
Pair Corralation between CVS HEALTH and Mawson Gold
Assuming the 90 days trading horizon CVS HEALTH CDR is expected to under-perform the Mawson Gold. But the stock apears to be less risky and, when comparing its historical volatility, CVS HEALTH CDR is 2.27 times less risky than Mawson Gold. The stock trades about -0.06 of its potential returns per unit of risk. The Mawson Gold Limited is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 37.00 in Mawson Gold Limited on September 14, 2024 and sell it today you would earn a total of 68.00 from holding Mawson Gold Limited or generate 183.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CVS HEALTH CDR vs. Mawson Gold Limited
Performance |
| Timeline |
| CVS HEALTH CDR |
| Mawson Gold Limited |
CVS HEALTH and Mawson Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CVS HEALTH and Mawson Gold
The main advantage of trading using opposite CVS HEALTH and Mawson Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CVS HEALTH position performs unexpectedly, Mawson Gold 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 Mawson Gold will offset losses from the drop in Mawson Gold's long position.| CVS HEALTH vs. Extendicare | CVS HEALTH vs. Sienna Senior Living | CVS HEALTH vs. Rogers Sugar | CVS HEALTH vs. Chemtrade Logistics Income |
| Mawson Gold vs. Goodfood Market Corp | Mawson Gold vs. CVS HEALTH CDR | Mawson Gold vs. Medical Facilities | Mawson Gold vs. Computer Modelling Group |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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