Correlation Between Scandinavian Tobacco and CIGNA
Specify exactly 2 symbols:
By analyzing existing cross correlation between Scandinavian Tobacco Group and CIGNA P 325, you can compare the effects of market volatilities on Scandinavian Tobacco 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 Scandinavian Tobacco with a short position of CIGNA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scandinavian Tobacco and CIGNA.
Diversification Opportunities for Scandinavian Tobacco and CIGNA
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Scandinavian and CIGNA is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Scandinavian Tobacco Group 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 Scandinavian Tobacco 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 Scandinavian Tobacco 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 325 has no effect on the direction of Scandinavian Tobacco i.e., Scandinavian Tobacco and CIGNA go up and down completely randomly.
Pair Corralation between Scandinavian Tobacco and CIGNA
Assuming the 90 days horizon Scandinavian Tobacco Group is expected to under-perform the CIGNA. In addition to that, Scandinavian Tobacco is 1.66 times more volatile than CIGNA P 325. It trades about -0.22 of its total potential returns per unit of risk. CIGNA P 325 is currently generating about -0.34 per unit of volatility. If you would invest 9,889 in CIGNA P 325 on September 12, 2024 and sell it today you would lose (329.00) from holding CIGNA P 325 or give up 3.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 66.67% |
| Values | Daily Returns |
Scandinavian Tobacco Group vs. CIGNA P 325
Performance |
| Timeline |
| Scandinavian Tobacco |
| CIGNA P 325 |
Scandinavian Tobacco and CIGNA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Scandinavian Tobacco and CIGNA
The main advantage of trading using opposite Scandinavian Tobacco and CIGNA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scandinavian Tobacco 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.| Scandinavian Tobacco vs. Imperial Brands PLC | Scandinavian Tobacco vs. RLX Technology | Scandinavian Tobacco vs. British American Tobacco | Scandinavian Tobacco vs. Turning Point Brands |
| CIGNA vs. Century Aluminum | CIGNA vs. Grupo Simec SAB | CIGNA vs. Summit Environmental | CIGNA vs. Algoma Steel Group |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |