Correlation Between Reservoir Media and CIGNA
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By analyzing existing cross correlation between Reservoir Media and CIGNA P, you can compare the effects of market volatilities on Reservoir Media 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 Reservoir Media with a short position of CIGNA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Reservoir Media and CIGNA.
Diversification Opportunities for Reservoir Media and CIGNA
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Reservoir and CIGNA is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Reservoir Media and CIGNA P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CIGNA P and Reservoir Media 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 Reservoir Media 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 Reservoir Media i.e., Reservoir Media and CIGNA go up and down completely randomly.
Pair Corralation between Reservoir Media and CIGNA
Given the investment horizon of 90 days Reservoir Media is expected to generate 3.68 times more return on investment than CIGNA. However, Reservoir Media is 3.68 times more volatile than CIGNA P. It trades about 0.06 of its potential returns per unit of risk. CIGNA P is currently generating about -0.01 per unit of risk. If you would invest 911.00 in Reservoir Media on September 12, 2024 and sell it today you would earn a total of 17.00 from holding Reservoir Media or generate 1.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Reservoir Media vs. CIGNA P
Performance |
| Timeline |
| Reservoir Media |
| CIGNA P |
Reservoir Media and CIGNA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Reservoir Media and CIGNA
The main advantage of trading using opposite Reservoir Media and CIGNA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Reservoir Media 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.| Reservoir Media vs. Reading International | Reservoir Media vs. Marcus | Reservoir Media vs. Gaia Inc | Reservoir Media vs. News Corp B |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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