Correlation Between ATT and CIGNA
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By analyzing existing cross correlation between ATT Inc and CIGNA P, you can compare the effects of market volatilities on ATT 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 ATT with a short position of CIGNA. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATT and CIGNA.
Diversification Opportunities for ATT and CIGNA
Modest diversification
The 3 months correlation between ATT and CIGNA is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding ATT Inc and CIGNA P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CIGNA P and ATT 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 ATT Inc 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 ATT i.e., ATT and CIGNA go up and down completely randomly.
Pair Corralation between ATT and CIGNA
Taking into account the 90-day investment horizon ATT Inc is expected to generate 2.38 times more return on investment than CIGNA. However, ATT is 2.38 times more volatile than CIGNA P. It trades about 0.39 of its potential returns per unit of risk. CIGNA P is currently generating about 0.15 per unit of risk. If you would invest 2,169 in ATT Inc on November 10, 2024 and sell it today you would earn a total of 276.00 from holding ATT Inc or generate 12.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
ATT Inc vs. CIGNA P
Performance |
| Timeline |
| ATT Inc |
| CIGNA P |
ATT and CIGNA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATT and CIGNA
The main advantage of trading using opposite ATT and CIGNA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATT 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.The idea behind ATT Inc and CIGNA P pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| CIGNA vs. Delek Drilling | CIGNA vs. Jeld Wen Holding | CIGNA vs. Grupo Simec SAB | CIGNA vs. Pembina Pipeline |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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