Correlation Between Cigna Corp and Psychemedics
Can any of the company-specific risk be diversified away by investing in both Cigna Corp and Psychemedics 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 Psychemedics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cigna Corp and Psychemedics, you can compare the effects of market volatilities on Cigna Corp and Psychemedics 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 Psychemedics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cigna Corp and Psychemedics.
Diversification Opportunities for Cigna Corp and Psychemedics
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cigna and Psychemedics is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Cigna Corp and Psychemedics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Psychemedics 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 Psychemedics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Psychemedics has no effect on the direction of Cigna Corp i.e., Cigna Corp and Psychemedics go up and down completely randomly.
Pair Corralation between Cigna Corp and Psychemedics
If you would invest 24,458 in Cigna Corp on January 17, 2025 and sell it today you would earn a total of 8,397 from holding Cigna Corp or generate 34.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Cigna Corp vs. Psychemedics
Performance |
| Timeline |
| Cigna Corp |
| Psychemedics |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Cigna Corp and Psychemedics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cigna Corp and Psychemedics
The main advantage of trading using opposite Cigna Corp and Psychemedics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cigna Corp position performs unexpectedly, Psychemedics 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 Psychemedics will offset losses from the drop in Psychemedics' long position.| Cigna Corp vs. Elevance Health | Cigna Corp vs. UnitedHealth Group Incorporated | Cigna Corp vs. Centene Corp | Cigna Corp vs. Molina Healthcare |
| Psychemedics vs. Fonar | Psychemedics vs. Burning Rock Biotech | Psychemedics vs. Sera Prognostics | Psychemedics vs. DarioHealth 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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