Correlation Between CIGNA and Vita Coco
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By analyzing existing cross correlation between CIGNA P and Vita Coco, you can compare the effects of market volatilities on CIGNA and Vita Coco 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 Vita Coco. Check out your portfolio center. Please also check ongoing floating volatility patterns of CIGNA and Vita Coco.
Diversification Opportunities for CIGNA and Vita Coco
Excellent diversification
The 3 months correlation between CIGNA and Vita is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding CIGNA P and Vita Coco in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vita Coco 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 are associated (or correlated) with Vita Coco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vita Coco has no effect on the direction of CIGNA i.e., CIGNA and Vita Coco go up and down completely randomly.
Pair Corralation between CIGNA and Vita Coco
Assuming the 90 days trading horizon CIGNA P is expected to under-perform the Vita Coco. But the bond apears to be less risky and, when comparing its historical volatility, CIGNA P is 2.6 times less risky than Vita Coco. The bond trades about -0.09 of its potential returns per unit of risk. The Vita Coco is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 2,814 in Vita Coco on September 3, 2024 and sell it today you would earn a total of 740.00 from holding Vita Coco or generate 26.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CIGNA P vs. Vita Coco
Performance |
| Timeline |
| CIGNA P |
| Vita Coco |
CIGNA and Vita Coco Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CIGNA and Vita Coco
The main advantage of trading using opposite CIGNA and Vita Coco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CIGNA position performs unexpectedly, Vita Coco 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 Vita Coco will offset losses from the drop in Vita Coco's long position.| CIGNA vs. AEP TEX INC | CIGNA vs. US BANK NATIONAL | CIGNA vs. Jackson Financial | CIGNA vs. Brera Holdings PLC |
| Vita Coco vs. Coca Cola Femsa SAB | Vita Coco vs. Coca Cola European Partners | Vita Coco vs. Embotelladora Andina SA | Vita Coco vs. Monster Beverage Corp |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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