Correlation Between Procter Gamble and CIGNA
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By analyzing existing cross correlation between Procter Gamble and CIGNA P 325, you can compare the effects of market volatilities on Procter Gamble 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 Procter Gamble with a short position of CIGNA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Procter Gamble and CIGNA.
Diversification Opportunities for Procter Gamble and CIGNA
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Procter and CIGNA is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Procter Gamble and CIGNA P 325 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CIGNA P 325 and Procter Gamble 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 Procter Gamble 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 325 has no effect on the direction of Procter Gamble i.e., Procter Gamble and CIGNA go up and down completely randomly.
Pair Corralation between Procter Gamble and CIGNA
Allowing for the 90-day total investment horizon Procter Gamble is expected to generate 1.78 times more return on investment than CIGNA. However, Procter Gamble is 1.78 times more volatile than CIGNA P 325. It trades about 0.07 of its potential returns per unit of risk. CIGNA P 325 is currently generating about 0.0 per unit of risk. If you would invest 14,110 in Procter Gamble on August 31, 2024 and sell it today you would earn a total of 3,816 from holding Procter Gamble or generate 27.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 80.21% |
| Values | Daily Returns |
Procter Gamble vs. CIGNA P 325
Performance |
| Timeline |
| Procter Gamble |
| CIGNA P 325 |
Procter Gamble and CIGNA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Procter Gamble and CIGNA
The main advantage of trading using opposite Procter Gamble and CIGNA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Procter Gamble 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.| Procter Gamble vs. Aquagold International | Procter Gamble vs. Morningstar Unconstrained Allocation | Procter Gamble vs. Thrivent High Yield | Procter Gamble vs. Via Renewables |
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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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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