Correlation Between Aclarion and Cigna Corp
Can any of the company-specific risk be diversified away by investing in both Aclarion and Cigna Corp 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 Aclarion and Cigna Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aclarion and Cigna Corp, you can compare the effects of market volatilities on Aclarion and Cigna Corp 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 Aclarion with a short position of Cigna Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aclarion and Cigna Corp.
Diversification Opportunities for Aclarion and Cigna Corp
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Aclarion and Cigna is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Aclarion and Cigna Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cigna Corp and Aclarion 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 Aclarion are associated (or correlated) with Cigna Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cigna Corp has no effect on the direction of Aclarion i.e., Aclarion and Cigna Corp go up and down completely randomly.
Pair Corralation between Aclarion and Cigna Corp
Assuming the 90 days horizon Aclarion is expected to generate 53.81 times more return on investment than Cigna Corp. However, Aclarion is 53.81 times more volatile than Cigna Corp. It trades about 0.1 of its potential returns per unit of risk. Cigna Corp is currently generating about 0.0 per unit of risk. If you would invest 16.00 in Aclarion on September 25, 2024 and sell it today you would lose (13.60) from holding Aclarion or give up 85.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 76.46% |
| Values | Daily Returns |
Aclarion vs. Cigna Corp
Performance |
| Timeline |
| Aclarion |
| Cigna Corp |
Aclarion and Cigna Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aclarion and Cigna Corp
The main advantage of trading using opposite Aclarion and Cigna Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aclarion position performs unexpectedly, Cigna Corp 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 Cigna Corp will offset losses from the drop in Cigna Corp's long position.| Aclarion vs. Aclarion | Aclarion vs. Iveda Solutions Warrant | Aclarion vs. Dermata Therapeutics Warrant | Aclarion vs. Heartbeam Warrant |
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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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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