Correlation Between Emerson Electric and CIGNA
Specify exactly 2 symbols:
By analyzing existing cross correlation between Emerson Electric and CIGNA P, you can compare the effects of market volatilities on Emerson Electric and CIGNA 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 Emerson Electric with a short position of CIGNA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Emerson Electric and CIGNA.
Diversification Opportunities for Emerson Electric and CIGNA
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Emerson and CIGNA is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Emerson Electric and CIGNA P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CIGNA P and Emerson Electric 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 Emerson Electric are associated (or correlated) with CIGNA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CIGNA P has no effect on the direction of Emerson Electric i.e., Emerson Electric and CIGNA go up and down completely randomly.
Pair Corralation between Emerson Electric and CIGNA
Considering the 90-day investment horizon Emerson Electric is expected to generate 6.01 times more return on investment than CIGNA. However, Emerson Electric is 6.01 times more volatile than CIGNA P. It trades about 0.11 of its potential returns per unit of risk. CIGNA P is currently generating about 0.01 per unit of risk. If you would invest 8,806 in Emerson Electric on September 4, 2024 and sell it today you would earn a total of 4,534 from holding Emerson Electric or generate 51.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.19% |
| Values | Daily Returns |
Emerson Electric vs. CIGNA P
Performance |
| Timeline |
| Emerson Electric |
| CIGNA P |
Emerson Electric and CIGNA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Emerson Electric and CIGNA
The main advantage of trading using opposite Emerson Electric and CIGNA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Emerson Electric position performs unexpectedly, CIGNA 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 CIGNA will offset losses from the drop in CIGNA's long position.| Emerson Electric vs. Dover | Emerson Electric vs. Parker Hannifin | Emerson Electric vs. Pentair PLC | Emerson Electric vs. Eaton PLC |
| CIGNA vs. Designer Brands | CIGNA vs. Lincoln Electric Holdings | CIGNA vs. Emerson Electric | CIGNA vs. Parker Hannifin |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |