Correlation Between Luxfer Holdings and CIGNA
Specify exactly 2 symbols:
By analyzing existing cross correlation between Luxfer Holdings PLC and CIGNA P, you can compare the effects of market volatilities on Luxfer Holdings 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 Luxfer Holdings with a short position of CIGNA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luxfer Holdings and CIGNA.
Diversification Opportunities for Luxfer Holdings and CIGNA
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Luxfer and CIGNA is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Luxfer Holdings PLC and CIGNA P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CIGNA P and Luxfer Holdings 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 Luxfer Holdings PLC 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 Luxfer Holdings i.e., Luxfer Holdings and CIGNA go up and down completely randomly.
Pair Corralation between Luxfer Holdings and CIGNA
Given the investment horizon of 90 days Luxfer Holdings PLC is expected to generate 8.28 times more return on investment than CIGNA. However, Luxfer Holdings is 8.28 times more volatile than CIGNA P. It trades about 0.03 of its potential returns per unit of risk. CIGNA P is currently generating about 0.01 per unit of risk. If you would invest 1,191 in Luxfer Holdings PLC on September 12, 2024 and sell it today you would earn a total of 226.00 from holding Luxfer Holdings PLC or generate 18.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Luxfer Holdings PLC vs. CIGNA P
Performance |
| Timeline |
| Luxfer Holdings PLC |
| CIGNA P |
Luxfer Holdings and CIGNA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Luxfer Holdings and CIGNA
The main advantage of trading using opposite Luxfer Holdings and CIGNA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Luxfer Holdings 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.| Luxfer Holdings vs. Graham | Luxfer Holdings vs. Enerpac Tool Group | Luxfer Holdings vs. Kadant Inc | Luxfer Holdings vs. Omega Flex |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |