Correlation Between FIBRA Storage and CVS Health
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By analyzing existing cross correlation between FIBRA Storage and CVS Health, you can compare the effects of market volatilities on FIBRA Storage 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 FIBRA Storage with a short position of CVS Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of FIBRA Storage and CVS Health.
Diversification Opportunities for FIBRA Storage and CVS Health
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between FIBRA and CVS is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding FIBRA Storage and CVS Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CVS Health and FIBRA Storage 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 FIBRA Storage 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 has no effect on the direction of FIBRA Storage i.e., FIBRA Storage and CVS Health go up and down completely randomly.
Pair Corralation between FIBRA Storage and CVS Health
Assuming the 90 days trading horizon FIBRA Storage is expected to generate 1.42 times less return on investment than CVS Health. But when comparing it to its historical volatility, FIBRA Storage is 1.64 times less risky than CVS Health. It trades about 0.08 of its potential returns per unit of risk. CVS Health is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 104,347 in CVS Health on August 30, 2024 and sell it today you would earn a total of 19,163 from holding CVS Health or generate 18.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FIBRA Storage vs. CVS Health
Performance |
| Timeline |
| FIBRA Storage |
| CVS Health |
FIBRA Storage and CVS Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FIBRA Storage and CVS Health
The main advantage of trading using opposite FIBRA Storage and CVS Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FIBRA Storage 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.| FIBRA Storage vs. McEwen Mining | FIBRA Storage vs. Taiwan Semiconductor Manufacturing | FIBRA Storage vs. Micron Technology | FIBRA Storage vs. United Airlines Holdings |
| CVS Health vs. Southern Copper | CVS Health vs. Grupo Sports World | CVS Health vs. Monster Beverage Corp | CVS Health vs. Cognizant Technology Solutions |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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