Correlation Between ATT and CIGNA
Specify exactly 2 symbols:
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
Very good diversification
The 3 months correlation between ATT and CIGNA is -0.4. 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 5.34 times more return on investment than CIGNA. However, ATT is 5.34 times more volatile than CIGNA P. It trades about 0.21 of its potential returns per unit of risk. CIGNA P is currently generating about 0.01 per unit of risk. If you would invest 2,202 in ATT Inc on August 31, 2024 and sell it today you would earn a total of 114.00 from holding ATT Inc or generate 5.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 91.3% |
| 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.| ATT vs. RLJ Lodging Trust | ATT vs. Aquagold International | ATT vs. Stepstone Group | ATT vs. Morningstar Unconstrained Allocation |
| CIGNA vs. Parker Hannifin | CIGNA vs. RBC Bearings Incorporated | CIGNA vs. Chemours Co | CIGNA vs. Olympic Steel |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |