Correlation Between Cigna Corp and Premier
Can any of the company-specific risk be diversified away by investing in both Cigna Corp and Premier 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 Premier into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cigna Corp and Premier, you can compare the effects of market volatilities on Cigna Corp and Premier 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 Premier. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cigna Corp and Premier.
Diversification Opportunities for Cigna Corp and Premier
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cigna and Premier is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Cigna Corp and Premier in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Premier 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 Premier. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Premier has no effect on the direction of Cigna Corp i.e., Cigna Corp and Premier go up and down completely randomly.
Pair Corralation between Cigna Corp and Premier
Allowing for the 90-day total investment horizon Cigna Corp is expected to generate 4.18 times less return on investment than Premier. But when comparing it to its historical volatility, Cigna Corp is 1.5 times less risky than Premier. It trades about 0.08 of its potential returns per unit of risk. Premier is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 1,985 in Premier on August 25, 2024 and sell it today you would earn a total of 299.00 from holding Premier or generate 15.06% 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. Premier
Performance |
| Timeline |
| Cigna Corp |
| Premier |
Cigna Corp and Premier Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cigna Corp and Premier
The main advantage of trading using opposite Cigna Corp and Premier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cigna Corp position performs unexpectedly, Premier 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 Premier will offset losses from the drop in Premier's long position.| Cigna Corp vs. Elevance Health | Cigna Corp vs. UnitedHealth Group Incorporated | Cigna Corp vs. Centene Corp | Cigna Corp vs. Molina Healthcare |
| Premier vs. National Research Corp | Premier vs. Definitive Healthcare Corp | Premier vs. HealthStream | Premier vs. Privia Health Group |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |