Correlation Between CVS HEALTH and Magna Mining
Can any of the company-specific risk be diversified away by investing in both CVS HEALTH and Magna Mining 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 Magna Mining 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 Magna Mining, you can compare the effects of market volatilities on CVS HEALTH and Magna Mining 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 Magna Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of CVS HEALTH and Magna Mining.
Diversification Opportunities for CVS HEALTH and Magna Mining
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CVS and Magna is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding CVS HEALTH CDR and Magna Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Magna Mining 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 Magna Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Magna Mining has no effect on the direction of CVS HEALTH i.e., CVS HEALTH and Magna Mining go up and down completely randomly.
Pair Corralation between CVS HEALTH and Magna Mining
Assuming the 90 days trading horizon CVS HEALTH is expected to generate 18.06 times less return on investment than Magna Mining. But when comparing it to its historical volatility, CVS HEALTH CDR is 1.99 times less risky than Magna Mining. It trades about 0.0 of its potential returns per unit of risk. Magna Mining is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 91.00 in Magna Mining on December 12, 2024 and sell it today you would earn a total of 59.00 from holding Magna Mining or generate 64.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CVS HEALTH CDR vs. Magna Mining
Performance |
| Timeline |
| CVS HEALTH CDR |
| Magna Mining |
CVS HEALTH and Magna Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CVS HEALTH and Magna Mining
The main advantage of trading using opposite CVS HEALTH and Magna Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CVS HEALTH position performs unexpectedly, Magna Mining 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 Magna Mining will offset losses from the drop in Magna Mining's long position.| CVS HEALTH vs. A W FOOD | ||
| CVS HEALTH vs. Quipt Home Medical | ||
| CVS HEALTH vs. Western Investment | ||
| CVS HEALTH vs. Solid Impact Investments |
| Magna Mining vs. Brunswick Exploration | ||
| Magna Mining vs. Fireweed Zinc | ||
| Magna Mining vs. Emerita Resources Corp | ||
| Magna Mining vs. InZinc Mining |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |