Correlation Between Jamieson Wellness and CVS HEALTH
Can any of the company-specific risk be diversified away by investing in both Jamieson Wellness 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 Jamieson Wellness and CVS HEALTH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jamieson Wellness and CVS HEALTH CDR, you can compare the effects of market volatilities on Jamieson Wellness 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 Jamieson Wellness with a short position of CVS HEALTH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jamieson Wellness and CVS HEALTH.
Diversification Opportunities for Jamieson Wellness and CVS HEALTH
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Jamieson and CVS is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Jamieson Wellness 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 Jamieson Wellness 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 Jamieson Wellness 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 Jamieson Wellness i.e., Jamieson Wellness and CVS HEALTH go up and down completely randomly.
Pair Corralation between Jamieson Wellness and CVS HEALTH
Assuming the 90 days trading horizon Jamieson Wellness is expected to generate 0.53 times more return on investment than CVS HEALTH. However, Jamieson Wellness is 1.9 times less risky than CVS HEALTH. It trades about 0.14 of its potential returns per unit of risk. CVS HEALTH CDR is currently generating about 0.05 per unit of risk. If you would invest 3,449 in Jamieson Wellness on August 29, 2024 and sell it today you would earn a total of 197.00 from holding Jamieson Wellness or generate 5.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jamieson Wellness vs. CVS HEALTH CDR
Performance |
| Timeline |
| Jamieson Wellness |
| CVS HEALTH CDR |
Jamieson Wellness and CVS HEALTH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jamieson Wellness and CVS HEALTH
The main advantage of trading using opposite Jamieson Wellness and CVS HEALTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jamieson Wellness 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.| Jamieson Wellness vs. Amazon CDR | Jamieson Wellness vs. Apple Inc CDR | Jamieson Wellness vs. Alphabet Inc CDR | Jamieson Wellness vs. Walmart Inc CDR |
| CVS HEALTH vs. Solar Alliance Energy | CVS HEALTH vs. Braille Energy Systems | CVS HEALTH vs. MedMira | CVS HEALTH vs. Lite Access Technologies |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |