Correlation Between Mesa Air and CIGNA
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By analyzing existing cross correlation between Mesa Air Group and CIGNA P, you can compare the effects of market volatilities on Mesa Air 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 Mesa Air with a short position of CIGNA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mesa Air and CIGNA.
Diversification Opportunities for Mesa Air and CIGNA
Weak diversification
The 3 months correlation between Mesa and CIGNA is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Mesa Air Group and CIGNA P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CIGNA P and Mesa Air 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 Mesa Air Group 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 Mesa Air i.e., Mesa Air and CIGNA go up and down completely randomly.
Pair Corralation between Mesa Air and CIGNA
Given the investment horizon of 90 days Mesa Air Group is expected to generate 24.22 times more return on investment than CIGNA. However, Mesa Air is 24.22 times more volatile than CIGNA P. It trades about 0.02 of its potential returns per unit of risk. CIGNA P is currently generating about 0.02 per unit of risk. If you would invest 115.00 in Mesa Air Group on September 4, 2024 and sell it today you would lose (12.00) from holding Mesa Air Group or give up 10.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.79% |
| Values | Daily Returns |
Mesa Air Group vs. CIGNA P
Performance |
| Timeline |
| Mesa Air Group |
| CIGNA P |
Mesa Air and CIGNA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mesa Air and CIGNA
The main advantage of trading using opposite Mesa Air and CIGNA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mesa Air 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.| Mesa Air vs. Allegiant Travel | Mesa Air vs. Sun Country Airlines | Mesa Air vs. Frontier Group Holdings | Mesa Air vs. Azul SA |
| CIGNA vs. Hafnia Limited | CIGNA vs. National Beverage Corp | CIGNA vs. United Guardian | CIGNA vs. Proficient Auto Logistics, |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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