Correlation Between Cigna Corp and Joint Corp
Can any of the company-specific risk be diversified away by investing in both Cigna Corp and Joint Corp 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 Joint Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cigna Corp and The Joint Corp, you can compare the effects of market volatilities on Cigna Corp and Joint Corp 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 Joint Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cigna Corp and Joint Corp.
Diversification Opportunities for Cigna Corp and Joint Corp
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cigna and Joint is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Cigna Corp and The Joint Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Joint Corp 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 Joint Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Joint Corp has no effect on the direction of Cigna Corp i.e., Cigna Corp and Joint Corp go up and down completely randomly.
Pair Corralation between Cigna Corp and Joint Corp
Allowing for the 90-day total investment horizon Cigna Corp is expected to generate 0.63 times more return on investment than Joint Corp. However, Cigna Corp is 1.6 times less risky than Joint Corp. It trades about 0.21 of its potential returns per unit of risk. The Joint Corp is currently generating about 0.03 per unit of risk. If you would invest 30,823 in Cigna Corp on August 30, 2024 and sell it today you would earn a total of 2,827 from holding Cigna Corp or generate 9.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cigna Corp vs. The Joint Corp
Performance |
| Timeline |
| Cigna Corp |
| Joint Corp |
Cigna Corp and Joint Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cigna Corp and Joint Corp
The main advantage of trading using opposite Cigna Corp and Joint Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cigna Corp position performs unexpectedly, Joint Corp 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 Joint Corp will offset losses from the drop in Joint Corp's long position.| Cigna Corp vs. Elevance Health | Cigna Corp vs. UnitedHealth Group Incorporated | Cigna Corp vs. Centene Corp | Cigna Corp vs. Molina Healthcare |
| Joint Corp vs. Humana Inc | Joint Corp vs. Cigna Corp | Joint Corp vs. Elevance Health | Joint Corp vs. Centene Corp |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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