Correlation Between CIGNA and Willamette Valley
Specify exactly 2 symbols:
By analyzing existing cross correlation between CIGNA P and Willamette Valley Vineyards, you can compare the effects of market volatilities on CIGNA and Willamette Valley 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 Willamette Valley. Check out your portfolio center. Please also check ongoing floating volatility patterns of CIGNA and Willamette Valley.
Diversification Opportunities for CIGNA and Willamette Valley
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CIGNA and Willamette is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding CIGNA P and Willamette Valley Vineyards in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Willamette Valley 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 Willamette Valley. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Willamette Valley has no effect on the direction of CIGNA i.e., CIGNA and Willamette Valley go up and down completely randomly.
Pair Corralation between CIGNA and Willamette Valley
Assuming the 90 days trading horizon CIGNA P is expected to generate 36.05 times more return on investment than Willamette Valley. However, CIGNA is 36.05 times more volatile than Willamette Valley Vineyards. It trades about 0.06 of its potential returns per unit of risk. Willamette Valley Vineyards is currently generating about -0.05 per unit of risk. If you would invest 7,769 in CIGNA P on September 3, 2024 and sell it today you would lose (591.00) from holding CIGNA P or give up 7.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
CIGNA P vs. Willamette Valley Vineyards
Performance |
| Timeline |
| CIGNA P |
| Willamette Valley |
CIGNA and Willamette Valley Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CIGNA and Willamette Valley
The main advantage of trading using opposite CIGNA and Willamette Valley positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CIGNA position performs unexpectedly, Willamette Valley 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 Willamette Valley will offset losses from the drop in Willamette Valley's long position.| CIGNA vs. Willamette Valley Vineyards | CIGNA vs. Universal | CIGNA vs. National Beverage Corp | CIGNA vs. Celsius Holdings |
| Willamette Valley vs. Naked Wines plc | Willamette Valley vs. Andrew Peller Limited | Willamette Valley vs. Iconic Brands | Willamette Valley vs. Naked Wines plc |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |