Correlation Between EUDA Health and Cigna Corp
Can any of the company-specific risk be diversified away by investing in both EUDA Health and Cigna Corp 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 EUDA Health and Cigna Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EUDA Health Holdings and Cigna Corp, you can compare the effects of market volatilities on EUDA Health and Cigna Corp 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 EUDA Health with a short position of Cigna Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of EUDA Health and Cigna Corp.
Diversification Opportunities for EUDA Health and Cigna Corp
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between EUDA and Cigna is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding EUDA Health Holdings and Cigna Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cigna Corp and EUDA Health 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 EUDA Health Holdings are associated (or correlated) with Cigna Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cigna Corp has no effect on the direction of EUDA Health i.e., EUDA Health and Cigna Corp go up and down completely randomly.
Pair Corralation between EUDA Health and Cigna Corp
Given the investment horizon of 90 days EUDA Health Holdings is expected to generate 2.44 times more return on investment than Cigna Corp. However, EUDA Health is 2.44 times more volatile than Cigna Corp. It trades about 0.07 of its potential returns per unit of risk. Cigna Corp is currently generating about 0.1 per unit of risk. If you would invest 445.00 in EUDA Health Holdings on August 24, 2024 and sell it today you would earn a total of 22.00 from holding EUDA Health Holdings or generate 4.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
EUDA Health Holdings vs. Cigna Corp
Performance |
| Timeline |
| EUDA Health Holdings |
| Cigna Corp |
EUDA Health and Cigna Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EUDA Health and Cigna Corp
The main advantage of trading using opposite EUDA Health and Cigna Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EUDA Health position performs unexpectedly, Cigna Corp 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 Corp will offset losses from the drop in Cigna Corp's long position.| EUDA Health vs. Healthcare Triangle | EUDA Health vs. Bullfrog AI Holdings, | EUDA Health vs. Mangoceuticals, Common Stock | EUDA Health vs. FOXO Technologies |
| Cigna Corp vs. Elevance Health | Cigna Corp vs. UnitedHealth Group Incorporated | Cigna Corp vs. Centene Corp | Cigna Corp vs. Molina Healthcare |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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