Correlation Between Qualicorp Consultoria and Cigna
Can any of the company-specific risk be diversified away by investing in both Qualicorp Consultoria and Cigna at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Qualicorp Consultoria and Cigna into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Qualicorp Consultoria e and Cigna, you can compare the effects of market volatilities on Qualicorp Consultoria 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 Qualicorp Consultoria with a short position of Cigna. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qualicorp Consultoria and Cigna.
Diversification Opportunities for Qualicorp Consultoria and Cigna
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Qualicorp and Cigna is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Qualicorp Consultoria e and Cigna in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cigna and Qualicorp Consultoria 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 Qualicorp Consultoria e 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 has no effect on the direction of Qualicorp Consultoria i.e., Qualicorp Consultoria and Cigna go up and down completely randomly.
Pair Corralation between Qualicorp Consultoria and Cigna
Assuming the 90 days trading horizon Qualicorp Consultoria e is expected to generate 2.39 times more return on investment than Cigna. However, Qualicorp Consultoria is 2.39 times more volatile than Cigna. It trades about 0.21 of its potential returns per unit of risk. Cigna is currently generating about 0.02 per unit of risk. If you would invest 156.00 in Qualicorp Consultoria e on November 9, 2024 and sell it today you would earn a total of 22.00 from holding Qualicorp Consultoria e or generate 14.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qualicorp Consultoria e vs. Cigna
Performance |
| Timeline |
| Qualicorp Consultoria |
| Cigna |
Qualicorp Consultoria and Cigna Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qualicorp Consultoria and Cigna
The main advantage of trading using opposite Qualicorp Consultoria and Cigna positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qualicorp Consultoria 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.| Qualicorp Consultoria vs. Hypera SA | Qualicorp Consultoria vs. Fleury SA | Qualicorp Consultoria vs. Raia Drogasil SA | Qualicorp Consultoria vs. BB Seguridade Participacoes |
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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 CEOs Directory module to screen CEOs from public companies around the world.
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