Correlation Between Cigna Corp and Waystar Holding
Can any of the company-specific risk be diversified away by investing in both Cigna Corp and Waystar Holding 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 Waystar Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cigna Corp and Waystar Holding Corp, you can compare the effects of market volatilities on Cigna Corp and Waystar Holding 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 Waystar Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cigna Corp and Waystar Holding.
Diversification Opportunities for Cigna Corp and Waystar Holding
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cigna and Waystar is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Cigna Corp and Waystar Holding Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Waystar Holding 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 Waystar Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Waystar Holding Corp has no effect on the direction of Cigna Corp i.e., Cigna Corp and Waystar Holding go up and down completely randomly.
Pair Corralation between Cigna Corp and Waystar Holding
Allowing for the 90-day total investment horizon Cigna Corp is expected to generate 1.8 times less return on investment than Waystar Holding. In addition to that, Cigna Corp is 1.07 times more volatile than Waystar Holding Corp. It trades about 0.14 of its total potential returns per unit of risk. Waystar Holding Corp is currently generating about 0.26 per unit of volatility. If you would invest 2,790 in Waystar Holding Corp on August 27, 2024 and sell it today you would earn a total of 306.00 from holding Waystar Holding Corp or generate 10.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cigna Corp vs. Waystar Holding Corp
Performance |
| Timeline |
| Cigna Corp |
| Waystar Holding Corp |
Cigna Corp and Waystar Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cigna Corp and Waystar Holding
The main advantage of trading using opposite Cigna Corp and Waystar Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cigna Corp position performs unexpectedly, Waystar Holding 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 Waystar Holding will offset losses from the drop in Waystar Holding's long position.| Cigna Corp vs. Elevance Health | Cigna Corp vs. UnitedHealth Group Incorporated | Cigna Corp vs. Centene Corp | Cigna Corp vs. Molina Healthcare |
| Waystar Holding vs. Jacobs Solutions | Waystar Holding vs. Electrovaya Common Shares | Waystar Holding vs. Highway Holdings Limited | Waystar Holding vs. Peoples Educational Holdings |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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