Correlation Between Cigna Corp and Icad
Can any of the company-specific risk be diversified away by investing in both Cigna Corp and Icad 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 Icad into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cigna Corp and icad inc, you can compare the effects of market volatilities on Cigna Corp and Icad 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 Icad. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cigna Corp and Icad.
Diversification Opportunities for Cigna Corp and Icad
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cigna and Icad is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Cigna Corp and icad inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on icad 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 Icad. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of icad inc has no effect on the direction of Cigna Corp i.e., Cigna Corp and Icad go up and down completely randomly.
Pair Corralation between Cigna Corp and Icad
Allowing for the 90-day total investment horizon Cigna Corp is expected to generate 0.28 times more return on investment than Icad. However, Cigna Corp is 3.56 times less risky than Icad. It trades about 0.14 of its potential returns per unit of risk. icad inc is currently generating about -0.09 per unit of risk. If you would invest 31,492 in Cigna Corp on August 27, 2024 and sell it today you would earn a total of 1,809 from holding Cigna Corp or generate 5.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cigna Corp vs. icad inc
Performance |
| Timeline |
| Cigna Corp |
| icad inc |
Cigna Corp and Icad Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cigna Corp and Icad
The main advantage of trading using opposite Cigna Corp and Icad positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cigna Corp position performs unexpectedly, Icad 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 Icad will offset losses from the drop in Icad's long position.| Cigna Corp vs. Elevance Health | Cigna Corp vs. UnitedHealth Group Incorporated | Cigna Corp vs. Centene Corp | Cigna Corp vs. Molina Healthcare |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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