Correlation Between CIGNA and Century Aluminum
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By analyzing existing cross correlation between CIGNA P 325 and Century Aluminum, you can compare the effects of market volatilities on CIGNA and Century Aluminum 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 Century Aluminum. Check out your portfolio center. Please also check ongoing floating volatility patterns of CIGNA and Century Aluminum.
Diversification Opportunities for CIGNA and Century Aluminum
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between CIGNA and Century is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding CIGNA P 325 and Century Aluminum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Century Aluminum 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 Century Aluminum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Century Aluminum has no effect on the direction of CIGNA i.e., CIGNA and Century Aluminum go up and down completely randomly.
Pair Corralation between CIGNA and Century Aluminum
Assuming the 90 days trading horizon CIGNA P 325 is expected to under-perform the Century Aluminum. But the bond apears to be less risky and, when comparing its historical volatility, CIGNA P 325 is 8.0 times less risky than Century Aluminum. The bond trades about 0.0 of its potential returns per unit of risk. The Century Aluminum is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 789.00 in Century Aluminum on September 12, 2024 and sell it today you would earn a total of 1,409 from holding Century Aluminum or generate 178.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 77.04% |
| Values | Daily Returns |
CIGNA P 325 vs. Century Aluminum
Performance |
| Timeline |
| CIGNA P 325 |
| Century Aluminum |
CIGNA and Century Aluminum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CIGNA and Century Aluminum
The main advantage of trading using opposite CIGNA and Century Aluminum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CIGNA position performs unexpectedly, Century Aluminum 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 Century Aluminum will offset losses from the drop in Century Aluminum's long position.| CIGNA vs. Century Aluminum | CIGNA vs. Grupo Simec SAB | CIGNA vs. Summit Environmental | CIGNA vs. Algoma Steel Group |
| Century Aluminum vs. Kaiser Aluminum | Century Aluminum vs. Commercial Metals | Century Aluminum vs. Steel Dynamics | Century Aluminum vs. Reliance Steel Aluminum |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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