Correlation Between CIGNA and BCE
Specify exactly 2 symbols:
By analyzing existing cross correlation between CIGNA P 325 and BCE Inc, you can compare the effects of market volatilities on CIGNA and BCE 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 CIGNA with a short position of BCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of CIGNA and BCE.
Diversification Opportunities for CIGNA and BCE
Good diversification
The 3 months correlation between CIGNA and BCE is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding CIGNA P 325 and BCE Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BCE Inc and CIGNA 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 CIGNA P 325 are associated (or correlated) with BCE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BCE Inc has no effect on the direction of CIGNA i.e., CIGNA and BCE go up and down completely randomly.
Pair Corralation between CIGNA and BCE
Assuming the 90 days trading horizon CIGNA P 325 is expected to under-perform the BCE. But the bond apears to be less risky and, when comparing its historical volatility, CIGNA P 325 is 1.47 times less risky than BCE. The bond trades about -0.34 of its potential returns per unit of risk. The BCE Inc is currently generating about -0.22 of returns per unit of risk over similar time horizon. If you would invest 2,785 in BCE Inc on September 12, 2024 and sell it today you would lose (139.00) from holding BCE Inc or give up 4.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 63.64% |
| Values | Daily Returns |
CIGNA P 325 vs. BCE Inc
Performance |
| Timeline |
| CIGNA P 325 |
| BCE Inc |
CIGNA and BCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CIGNA and BCE
The main advantage of trading using opposite CIGNA and BCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CIGNA position performs unexpectedly, BCE 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 BCE will offset losses from the drop in BCE's long position.| 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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |