Correlation Between 7125 Percent and Cigna Corp
Can any of the company-specific risk be diversified away by investing in both 7125 Percent and Cigna Corp 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 7125 Percent and Cigna Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 7125 percent Fixed Rate and Cigna Corp, you can compare the effects of market volatilities on 7125 Percent and Cigna Corp 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 7125 Percent with a short position of Cigna Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of 7125 Percent and Cigna Corp.
Diversification Opportunities for 7125 Percent and Cigna Corp
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between 7125 and Cigna is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding 7125 percent Fixed Rate and Cigna Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cigna Corp and 7125 Percent 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 7125 percent Fixed Rate are associated (or correlated) with Cigna Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cigna Corp has no effect on the direction of 7125 Percent i.e., 7125 Percent and Cigna Corp go up and down completely randomly.
Pair Corralation between 7125 Percent and Cigna Corp
Considering the 90-day investment horizon 7125 percent Fixed Rate is expected to under-perform the Cigna Corp. But the stock apears to be less risky and, when comparing its historical volatility, 7125 percent Fixed Rate is 4.94 times less risky than Cigna Corp. The stock trades about -0.1 of its potential returns per unit of risk. The Cigna Corp is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 31,481 in Cigna Corp on September 1, 2024 and sell it today you would earn a total of 2,299 from holding Cigna Corp or generate 7.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
7125 percent Fixed Rate vs. Cigna Corp
Performance |
| Timeline |
| 7125 percent Fixed |
| Cigna Corp |
7125 Percent and Cigna Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 7125 Percent and Cigna Corp
The main advantage of trading using opposite 7125 Percent and Cigna Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 7125 Percent position performs unexpectedly, Cigna Corp 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 Corp will offset losses from the drop in Cigna Corp's long position.| 7125 Percent vs. Reinsurance Group of | 7125 Percent vs. Southern Co | 7125 Percent vs. Prudential Financial 5950 | 7125 Percent vs. CMS Energy Corp |
| Cigna Corp vs. Elevance Health | Cigna Corp vs. UnitedHealth Group Incorporated | Cigna Corp vs. Centene Corp | Cigna Corp vs. Molina Healthcare |
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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