This module allows you to analyze existing cross correlation between Cigna Corporation and CVS Health Corporation. You can compare the effects of market volatilities on Cigna and CVS Health 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 CVS Health. See also your portfolio center. Please also check ongoing floating volatility patterns of Cigna and CVS Health.
|Horizon||30 Days Login to change|
Compared to the overall equity markets, risk-adjusted returns on investments in Cigna Corporation are ranked lower than 1 (%) of all global equities and portfolios over the last 30 days. Despite nearly stable fundamental indicators, Cigna is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholder.
Compared to the overall equity markets, risk-adjusted returns on investments in CVS Health Corporation are ranked lower than 11 (%) of all global equities and portfolios over the last 30 days. In defiance of relatively fragile forward-looking signals, CVS Health reported solid returns over the last few months and may actually be approaching a breakup point.
Cigna and CVS Health Volatility Contrast
Predicted Return Density
Cigna Corp. vs. CVS Health Corp.
Allowing for the 30-days total investment horizon, Cigna is expected to generate 6.71 times less return on investment than CVS Health. In addition to that, Cigna is 1.41 times more volatile than CVS Health Corporation. It trades about 0.02 of its total potential returns per unit of risk. CVS Health Corporation is currently generating about 0.17 per unit of volatility. If you would invest 5,406 in CVS Health Corporation on August 16, 2019 and sell it today you would earn a total of 1,000.00 from holding CVS Health Corporation or generate 18.5% return on investment over 30 days.
Pair Corralation between Cigna and CVS Health
|Time Period||3 Months [change]|
Diversification Opportunities for Cigna and CVS Health
Almost no diversification
Overlapping area represents the amount of risk that can be diversified away by holding Cigna Corp. and CVS Health Corp. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on CVS Health 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 Corporation are associated (or correlated) with CVS Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CVS Health has no effect on the direction of Cigna i.e. Cigna and CVS Health go up and down completely randomly.
See also your portfolio center. Please also try Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.