Correlation Between Marvell Technology and CIGNA
Specify exactly 2 symbols:
By analyzing existing cross correlation between Marvell Technology Group and CIGNA P, you can compare the effects of market volatilities on Marvell Technology 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 Marvell Technology with a short position of CIGNA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marvell Technology and CIGNA.
Diversification Opportunities for Marvell Technology and CIGNA
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Marvell and CIGNA is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Marvell Technology Group and CIGNA P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CIGNA P and Marvell Technology 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 Marvell Technology 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 Marvell Technology i.e., Marvell Technology and CIGNA go up and down completely randomly.
Pair Corralation between Marvell Technology and CIGNA
Given the investment horizon of 90 days Marvell Technology Group is expected to generate 3.6 times more return on investment than CIGNA. However, Marvell Technology is 3.6 times more volatile than CIGNA P. It trades about 0.08 of its potential returns per unit of risk. CIGNA P is currently generating about -0.01 per unit of risk. If you would invest 3,584 in Marvell Technology Group on August 28, 2024 and sell it today you would earn a total of 5,640 from holding Marvell Technology Group or generate 157.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.95% |
| Values | Daily Returns |
Marvell Technology Group vs. CIGNA P
Performance |
| Timeline |
| Marvell Technology |
| CIGNA P |
Marvell Technology and CIGNA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marvell Technology and CIGNA
The main advantage of trading using opposite Marvell Technology and CIGNA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marvell Technology 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.The idea behind Marvell Technology Group and CIGNA P pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| CIGNA vs. AEP TEX INC | CIGNA vs. US BANK NATIONAL | CIGNA vs. Omega Healthcare Investors | CIGNA vs. Zoom Video Communications |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |