Correlation Between CVS Health and Ingen Technologies
Can any of the company-specific risk be diversified away by investing in both CVS Health and Ingen Technologies 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 Ingen Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CVS Health Corp and Ingen Technologies, you can compare the effects of market volatilities on CVS Health and Ingen Technologies 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 Ingen Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of CVS Health and Ingen Technologies.
Diversification Opportunities for CVS Health and Ingen Technologies
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CVS and Ingen is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CVS Health Corp and Ingen Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ingen Technologies 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 Corp are associated (or correlated) with Ingen Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ingen Technologies has no effect on the direction of CVS Health i.e., CVS Health and Ingen Technologies go up and down completely randomly.
Pair Corralation between CVS Health and Ingen Technologies
If you would invest 0.00 in Ingen Technologies on January 26, 2024 and sell it today you would earn a total of 0.00 from holding Ingen Technologies or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 90.91% |
| Values | Daily Returns |
CVS Health Corp vs. Ingen Technologies
Performance |
| Timeline |
| CVS Health Corp |
| Ingen Technologies |
CVS Health and Ingen Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CVS Health and Ingen Technologies
The main advantage of trading using opposite CVS Health and Ingen Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CVS Health position performs unexpectedly, Ingen Technologies 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 Ingen Technologies will offset losses from the drop in Ingen Technologies' long position.| CVS Health vs. Humana Inc | CVS Health vs. Cigna Corp | CVS Health vs. Elevance Health | CVS Health vs. Centene Corp |
| Ingen Technologies vs. Medtronic PLC | Ingen Technologies vs. CONMED | Ingen Technologies vs. Glaukos Corp | Ingen Technologies vs. Integer Holdings Corp |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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