Correlation Between HP and CIGNA
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By analyzing existing cross correlation between HP Inc and CIGNA P, you can compare the effects of market volatilities on HP 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 HP with a short position of CIGNA. Check out your portfolio center. Please also check ongoing floating volatility patterns of HP and CIGNA.
Diversification Opportunities for HP and CIGNA
Pay attention - limited upside
The 3 months correlation between HP and CIGNA is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding HP Inc and CIGNA P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CIGNA P and HP 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 HP Inc 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 HP i.e., HP and CIGNA go up and down completely randomly.
Pair Corralation between HP and CIGNA
Considering the 90-day investment horizon HP Inc is expected to under-perform the CIGNA. In addition to that, HP is 6.29 times more volatile than CIGNA P. It trades about -0.03 of its total potential returns per unit of risk. CIGNA P is currently generating about -0.16 per unit of volatility. If you would invest 9,715 in CIGNA P on August 31, 2024 and sell it today you would lose (149.00) from holding CIGNA P or give up 1.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 91.3% |
| Values | Daily Returns |
HP Inc vs. CIGNA P
Performance |
| Timeline |
| HP Inc |
| CIGNA P |
HP and CIGNA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HP and CIGNA
The main advantage of trading using opposite HP and CIGNA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HP 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.| HP vs. RLJ Lodging Trust | HP vs. Aquagold International | HP vs. Stepstone Group | HP vs. Morningstar Unconstrained Allocation |
| CIGNA vs. AEP TEX INC | CIGNA vs. US BANK NATIONAL | CIGNA vs. FactSet Research Systems | CIGNA vs. Golden Agri Resources |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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