Correlation Between Unifique Telecomunicaes and Cigna
Can any of the company-specific risk be diversified away by investing in both Unifique Telecomunicaes and Cigna 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 Unifique Telecomunicaes and Cigna into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Unifique Telecomunicaes SA and Cigna, you can compare the effects of market volatilities on Unifique Telecomunicaes 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 Unifique Telecomunicaes with a short position of Cigna. Check out your portfolio center. Please also check ongoing floating volatility patterns of Unifique Telecomunicaes and Cigna.
Diversification Opportunities for Unifique Telecomunicaes and Cigna
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Unifique and Cigna is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Unifique Telecomunicaes SA and Cigna in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cigna and Unifique Telecomunicaes 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 Unifique Telecomunicaes SA 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 has no effect on the direction of Unifique Telecomunicaes i.e., Unifique Telecomunicaes and Cigna go up and down completely randomly.
Pair Corralation between Unifique Telecomunicaes and Cigna
If you would invest (100.00) in Cigna on September 12, 2024 and sell it today you would earn a total of 100.00 from holding Cigna or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Unifique Telecomunicaes SA vs. Cigna
Performance |
| Timeline |
| Unifique Telecomunicaes |
| Cigna |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
Unifique Telecomunicaes and Cigna Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Unifique Telecomunicaes and Cigna
The main advantage of trading using opposite Unifique Telecomunicaes and Cigna positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Unifique Telecomunicaes 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.| Unifique Telecomunicaes vs. T Mobile | Unifique Telecomunicaes vs. Verizon Communications | Unifique Telecomunicaes vs. Vodafone Group Public | Unifique Telecomunicaes vs. Fundo Investimento Imobiliario |
| Cigna vs. Metalurgica Gerdau SA | Cigna vs. Nordon Indstrias Metalrgicas | Cigna vs. Autohome | Cigna vs. Palantir Technologies |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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