Correlation Between Cigna Corp and ASGN
Can any of the company-specific risk be diversified away by investing in both Cigna Corp and ASGN 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 Cigna Corp and ASGN into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cigna Corp and ASGN Inc, you can compare the effects of market volatilities on Cigna Corp and ASGN 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 Cigna Corp with a short position of ASGN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cigna Corp and ASGN.
Diversification Opportunities for Cigna Corp and ASGN
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cigna and ASGN is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Cigna Corp and ASGN Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASGN Inc and Cigna Corp 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 Cigna Corp are associated (or correlated) with ASGN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASGN Inc has no effect on the direction of Cigna Corp i.e., Cigna Corp and ASGN go up and down completely randomly.
Pair Corralation between Cigna Corp and ASGN
Allowing for the 90-day total investment horizon Cigna Corp is expected to generate 0.78 times more return on investment than ASGN. However, Cigna Corp is 1.28 times less risky than ASGN. It trades about 0.0 of its potential returns per unit of risk. ASGN Inc is currently generating about -0.02 per unit of risk. If you would invest 29,527 in Cigna Corp on September 20, 2024 and sell it today you would lose (1,286) from holding Cigna Corp or give up 4.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cigna Corp vs. ASGN Inc
Performance |
| Timeline |
| Cigna Corp |
| ASGN Inc |
Cigna Corp and ASGN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cigna Corp and ASGN
The main advantage of trading using opposite Cigna Corp and ASGN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cigna Corp position performs unexpectedly, ASGN 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 ASGN will offset losses from the drop in ASGN's long position.| Cigna Corp vs. ASGN Inc | Cigna Corp vs. Kforce Inc | Cigna Corp vs. Kelly Services A | Cigna Corp vs. Central Garden Pet |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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