Correlation Between Cigna Corp and Inogen
Can any of the company-specific risk be diversified away by investing in both Cigna Corp and Inogen 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 Inogen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cigna Corp and Inogen Inc, you can compare the effects of market volatilities on Cigna Corp and Inogen 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 Inogen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cigna Corp and Inogen.
Diversification Opportunities for Cigna Corp and Inogen
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cigna and Inogen is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Cigna Corp and Inogen Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inogen 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 Inogen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inogen Inc has no effect on the direction of Cigna Corp i.e., Cigna Corp and Inogen go up and down completely randomly.
Pair Corralation between Cigna Corp and Inogen
Allowing for the 90-day total investment horizon Cigna Corp is expected to generate 0.41 times more return on investment than Inogen. However, Cigna Corp is 2.43 times less risky than Inogen. It trades about 0.18 of its potential returns per unit of risk. Inogen Inc is currently generating about 0.06 per unit of risk. If you would invest 31,289 in Cigna Corp on August 31, 2024 and sell it today you would earn a total of 2,361 from holding Cigna Corp or generate 7.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cigna Corp vs. Inogen Inc
Performance |
| Timeline |
| Cigna Corp |
| Inogen Inc |
Cigna Corp and Inogen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cigna Corp and Inogen
The main advantage of trading using opposite Cigna Corp and Inogen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cigna Corp position performs unexpectedly, Inogen 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 Inogen will offset losses from the drop in Inogen'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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |