Correlation Between Jaguar Animal and CVS Health
Can any of the company-specific risk be diversified away by investing in both Jaguar Animal 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 Jaguar Animal and CVS Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jaguar Animal Health and CVS Health Corp, you can compare the effects of market volatilities on Jaguar Animal 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 Jaguar Animal with a short position of CVS Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jaguar Animal and CVS Health.
Diversification Opportunities for Jaguar Animal and CVS Health
-0.89 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Jaguar and CVS is -0.89. Overlapping area represents the amount of risk that can be diversified away by holding Jaguar Animal Health and CVS Health Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CVS Health Corp and Jaguar Animal 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 Jaguar Animal Health 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 Corp has no effect on the direction of Jaguar Animal i.e., Jaguar Animal and CVS Health go up and down completely randomly.
Pair Corralation between Jaguar Animal and CVS Health
Given the investment horizon of 90 days Jaguar Animal Health is expected to generate 4.47 times more return on investment than CVS Health. However, Jaguar Animal is 4.47 times more volatile than CVS Health Corp. It trades about 0.46 of its potential returns per unit of risk. CVS Health Corp is currently generating about -0.32 per unit of risk. If you would invest 8.20 in Jaguar Animal Health on February 7, 2024 and sell it today you would earn a total of 23.80 from holding Jaguar Animal Health or generate 290.24% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Jaguar Animal Health vs. CVS Health Corp
Performance |
Timeline |
Jaguar Animal Health |
CVS Health Corp |
Jaguar Animal and CVS Health Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jaguar Animal and CVS Health
The main advantage of trading using opposite Jaguar Animal and CVS Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jaguar Animal 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.Jaguar Animal vs. Shuttle Pharmaceuticals | Jaguar Animal vs. Lifecore Biomedical | Jaguar Animal vs. Journey Medical Corp | Jaguar Animal vs. Lucy Scientific Discovery |
CVS Health vs. Humana Inc | CVS Health vs. Cigna Corp | CVS Health vs. Elevance Health | CVS Health vs. Centene 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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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