Correlation Between Cigna Corp and Anthem
Can any of the company-specific risk be diversified away by investing in both Cigna Corp and Anthem at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Cigna Corp and Anthem into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cigna Corp and Anthem Inc, you can compare the effects of market volatilities on Cigna Corp and Anthem 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 Corp with a short position of Anthem. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cigna Corp and Anthem.
Diversification Opportunities for Cigna Corp and Anthem
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cigna and Anthem is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Cigna Corp and Anthem Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anthem Inc and Cigna Corp 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 Corp are associated (or correlated) with Anthem. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anthem Inc has no effect on the direction of Cigna Corp i.e., Cigna Corp and Anthem go up and down completely randomly.
Pair Corralation between Cigna Corp and Anthem
If you would invest 30,720 in Cigna Corp on January 17, 2024 and sell it today you would earn a total of 4,170 from holding Cigna Corp or generate 13.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 1.61% |
| Values | Daily Returns |
Cigna Corp vs. Anthem Inc
Performance |
| Timeline |
| Cigna Corp |
| Anthem Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Cigna Corp and Anthem Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cigna Corp and Anthem
The main advantage of trading using opposite Cigna Corp and Anthem positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cigna Corp position performs unexpectedly, Anthem 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 Anthem will offset losses from the drop in Anthem's long position.| Cigna Corp vs. Elevance Health | Cigna Corp vs. UnitedHealth Group Incorporated | Cigna Corp vs. Centene Corp | Cigna Corp vs. Molina Healthcare |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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