Correlation Between Cigna Corp and Definitive Healthcare
Can any of the company-specific risk be diversified away by investing in both Cigna Corp and Definitive Healthcare 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 Definitive Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cigna Corp and Definitive Healthcare Corp, you can compare the effects of market volatilities on Cigna Corp and Definitive Healthcare 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 Definitive Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cigna Corp and Definitive Healthcare.
Diversification Opportunities for Cigna Corp and Definitive Healthcare
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Cigna and Definitive is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Cigna Corp and Definitive Healthcare Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Definitive Healthcare 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 Definitive Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Definitive Healthcare has no effect on the direction of Cigna Corp i.e., Cigna Corp and Definitive Healthcare go up and down completely randomly.
Pair Corralation between Cigna Corp and Definitive Healthcare
Allowing for the 90-day total investment horizon Cigna Corp is expected to under-perform the Definitive Healthcare. In addition to that, Cigna Corp is 1.02 times more volatile than Definitive Healthcare Corp. It trades about -0.35 of its total potential returns per unit of risk. Definitive Healthcare Corp is currently generating about -0.14 per unit of volatility. If you would invest 445.00 in Definitive Healthcare Corp on September 25, 2024 and sell it today you would lose (31.00) from holding Definitive Healthcare Corp or give up 6.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cigna Corp vs. Definitive Healthcare Corp
Performance |
| Timeline |
| Cigna Corp |
| Definitive Healthcare |
Cigna Corp and Definitive Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cigna Corp and Definitive Healthcare
The main advantage of trading using opposite Cigna Corp and Definitive Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cigna Corp position performs unexpectedly, Definitive Healthcare 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 Definitive Healthcare will offset losses from the drop in Definitive Healthcare's long position.| Cigna Corp vs. Definitive Healthcare Corp | Cigna Corp vs. Edwards Lifesciences Corp | Cigna Corp vs. Outset Medical | Cigna Corp vs. Doximity |
| Definitive Healthcare vs. GeneDx Holdings Corp | Definitive Healthcare vs. LMF Acquisition Opportunities | Definitive Healthcare vs. Humacyte | Definitive Healthcare vs. Aquagold International |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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