Correlation Between Cigna Corp and Semler Scientific
Can any of the company-specific risk be diversified away by investing in both Cigna Corp and Semler Scientific 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 Semler Scientific into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cigna Corp and Semler Scientific, you can compare the effects of market volatilities on Cigna Corp and Semler Scientific 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 Semler Scientific. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cigna Corp and Semler Scientific.
Diversification Opportunities for Cigna Corp and Semler Scientific
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cigna and Semler is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Cigna Corp and Semler Scientific in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Semler Scientific 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 Semler Scientific. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Semler Scientific has no effect on the direction of Cigna Corp i.e., Cigna Corp and Semler Scientific go up and down completely randomly.
Pair Corralation between Cigna Corp and Semler Scientific
Allowing for the 90-day total investment horizon Cigna Corp is expected to generate 46.56 times less return on investment than Semler Scientific. But when comparing it to its historical volatility, Cigna Corp is 4.34 times less risky than Semler Scientific. It trades about 0.01 of its potential returns per unit of risk. Semler Scientific is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 2,841 in Semler Scientific on September 2, 2024 and sell it today you would earn a total of 2,861 from holding Semler Scientific or generate 100.7% 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. Semler Scientific
Performance |
| Timeline |
| Cigna Corp |
| Semler Scientific |
Cigna Corp and Semler Scientific Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cigna Corp and Semler Scientific
The main advantage of trading using opposite Cigna Corp and Semler Scientific positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cigna Corp position performs unexpectedly, Semler Scientific 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 Semler Scientific will offset losses from the drop in Semler Scientific's long position.| Cigna Corp vs. Elevance Health | Cigna Corp vs. UnitedHealth Group Incorporated | Cigna Corp vs. Centene Corp | Cigna Corp vs. Molina Healthcare |
| Semler Scientific vs. CVRx Inc | Semler Scientific vs. SurModics | Semler Scientific vs. Pulmonx Corp | Semler Scientific vs. Orthofix Medical |
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 Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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