Correlation Between Century Aluminum and CIGNA
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By analyzing existing cross correlation between Century Aluminum and CIGNA P 325, you can compare the effects of market volatilities on Century Aluminum and CIGNA 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 Century Aluminum with a short position of CIGNA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Century Aluminum and CIGNA.
Diversification Opportunities for Century Aluminum and CIGNA
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Century and CIGNA is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Century Aluminum and CIGNA P 325 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CIGNA P 325 and Century Aluminum 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 Century Aluminum are associated (or correlated) with CIGNA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CIGNA P 325 has no effect on the direction of Century Aluminum i.e., Century Aluminum and CIGNA go up and down completely randomly.
Pair Corralation between Century Aluminum and CIGNA
Given the investment horizon of 90 days Century Aluminum is expected to generate 6.41 times more return on investment than CIGNA. However, Century Aluminum is 6.41 times more volatile than CIGNA P 325. It trades about 0.07 of its potential returns per unit of risk. CIGNA P 325 is currently generating about 0.0 per unit of risk. If you would invest 777.00 in Century Aluminum on September 12, 2024 and sell it today you would earn a total of 1,419 from holding Century Aluminum or generate 182.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 79.39% |
| Values | Daily Returns |
Century Aluminum vs. CIGNA P 325
Performance |
| Timeline |
| Century Aluminum |
| CIGNA P 325 |
Century Aluminum and CIGNA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Century Aluminum and CIGNA
The main advantage of trading using opposite Century Aluminum and CIGNA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Century Aluminum position performs unexpectedly, CIGNA 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 will offset losses from the drop in CIGNA's long position.| Century Aluminum vs. Kaiser Aluminum | Century Aluminum vs. Commercial Metals | Century Aluminum vs. Steel Dynamics | Century Aluminum vs. Reliance Steel Aluminum |
| CIGNA vs. Century Aluminum | CIGNA vs. Grupo Simec SAB | CIGNA vs. Summit Environmental | CIGNA vs. Algoma Steel Group |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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