Cigna Corp Stock Volatility

CI Stock  USD 363.19  0.15  0.04%   
Cigna Corp appears to be very steady, given 3 months investment horizon. Cigna Corp secures Sharpe Ratio (or Efficiency) of 0.23, which signifies that the company had a 0.23% return per unit of risk over the last 3 months. We have found twenty-nine technical indicators for Cigna Corp, which you can use to evaluate the volatility of the firm. Please makes use of Cigna Corp's Mean Deviation of 0.7922, risk adjusted performance of 0.1512, and Downside Deviation of 1.04 to double-check if our risk estimates are consistent with your expectations. Key indicators related to Cigna Corp's volatility include:
720 Days Market Risk
Chance Of Distress
720 Days Economic Sensitivity
Cigna Corp Stock volatility depicts how high the prices fluctuate around the mean (or its average) price. In other words, it is a statistical measure of the distribution of Cigna daily returns, and it is calculated using variance and standard deviation. We also use Cigna's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Cigna Corp volatility.
  

ESG Sustainability

While most ESG disclosures are voluntary, Cigna Corp's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Cigna Corp's managers and investors.
Environment Score
Governance Score
Social Score
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Cigna Corp can benefit from it. Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Cigna Corp at lower prices. For example, an investor can purchase Cigna stock that has halved in price over a short period. This will lower your average cost per share, thereby improving your portfolio's performance when the markets normalize. Similarly, when the prices of Cigna Corp's stock rises, investors can sell out and invest the proceeds in other equities with better opportunities. Investing when markets are volatile with better valuations will accord both investors and companies the opportunity to generate better long-term returns.

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Cigna Corp Market Sensitivity And Downside Risk

Cigna Corp's beta coefficient measures the volatility of Cigna stock compared to the systematic risk of the entire market represented by your selected benchmark. In mathematical terms, beta represents the slope of the line through a regression of data points where each of these points represents Cigna stock's returns against your selected market. In other words, Cigna Corp's beta of 0.25 provides an investor with an approximation of how much risk Cigna Corp stock can potentially add to one of your existing portfolios. Cigna Corp has relatively low volatility with skewness of 1.2 and kurtosis of 4.89. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Cigna Corp's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Cigna Corp's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.
3 Months Beta |Analyze Cigna Corp Demand Trend
Check current 90 days Cigna Corp correlation with market (NYSE Composite)

Cigna Beta

    
  0.25  
Cigna standard deviation measures the daily dispersion of prices over your selected time horizon relative to its mean. A typical volatile entity has a high standard deviation, while the deviation of a stable instrument is usually low. As a downside, the standard deviation calculates all uncertainty as risk, even when it is in your favor, such as above-average returns.

Standard Deviation

    
  1.16  
It is essential to understand the difference between upside risk (as represented by Cigna Corp's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Cigna Corp's daily returns or price. Since the actual investment returns on holding a position in cigna stock tend to have a non-normal distribution, there will be different probabilities for losses than for gains. The likelihood of losses is reflected in the downside risk of an investment in Cigna Corp.

Using Cigna Put Option to Manage Risk

Put options written on Cigna Corp grant holders of the option the right to sell a specified amount of Cigna Corp at a specified price within a specified time frame. The put buyer has a limited loss and, while not fully unlimited gains, as the price of Cigna Stock cannot fall below zero, the put buyer does gain as the price drops. So, one way investors can hedge Cigna Corp's position is by buying a put option against it. The put option used this way is usually referred to as insurance. If an undesired outcome occurs and loss on holding Cigna Corp will be realized, the loss incurred will be offset by the profits made with the option trade.

Cigna Corp's PUT expiring on 2024-04-05

   Profit   
       Cigna Corp Price At Expiration  

Current Cigna Corp Insurance Chain

DeltaGammaOpen IntExpirationCurrent SpreadLast Price
Put
2024-04-05 PUT at $365.0-0.57230.0472112024-04-054.0 - 4.43.6View
Put
2024-04-05 PUT at $362.5-0.45220.0482562024-04-052.85 - 3.12.85View
Put
2024-04-05 PUT at $360.0-0.3420.04251002024-04-051.9 - 2.11.85View
Put
2024-04-05 PUT at $357.5-0.24180.0361472024-04-051.25 - 1.41.25View
Put
2024-04-05 PUT at $355.0-0.17190.028702024-04-050.8 - 1.050.85View
Put
2024-04-05 PUT at $352.5-0.11510.0208102024-04-050.45 - 1.00.53View
Put
2024-04-05 PUT at $350.0-0.08540.01555262024-04-050.35 - 0.50.4View
Put
2024-04-05 PUT at $347.5-0.05910.0112712024-04-050.2 - 0.40.27View
Put
2024-04-05 PUT at $345.0-0.05470.0093372024-04-050.05 - 0.450.28View
Put
2024-04-05 PUT at $342.5-0.0360.0065292024-04-050.05 - 0.30.52View
View All Cigna Corp Options

Cigna Corp Stock Volatility Analysis

Volatility refers to the frequency at which Cigna Corp stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Cigna Corp's price changes. Investors will then calculate the volatility of Cigna Corp's stock to predict their future moves. A stock that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A stock with relatively stable price changes has low volatility. A highly volatile stock is riskier, but the risk cuts both ways. Investing in highly volatile security can either be highly successful, or you may experience significant failure. There are two main types of Cigna Corp's volatility:

Historical Volatility

This type of stock volatility measures Cigna Corp's fluctuations based on previous trends. It's commonly used to predict Cigna Corp's future behavior based on its past. However, it cannot conclusively determine the future direction of the stock.

Implied Volatility

This type of volatility provides a positive outlook on future price fluctuations for Cigna Corp's current market price. This means that the stock will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on Cigna Corp's to be redeemed at a future date.
Transformation
The output start index for this execution was zero with a total number of output elements of sixty-one. Cigna Corp Average Price is the average of the sum of open, high, low and close daily prices of a bar. It can be used to smooth an indicator that normally takes just the closing price as input.

Cigna Corp Projected Return Density Against Market

Allowing for the 90-day total investment horizon Cigna Corp has a beta of 0.2495 suggesting as returns on the market go up, Cigna Corp average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Cigna Corp will be expected to be much smaller as well.
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Cigna Corp or Health Care Providers & Services sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Cigna Corp's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Cigna stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
Cigna Corp has an alpha of 0.2718, implying that it can generate a 0.27 percent excess return over NYSE Composite after adjusting for the inherited market risk (beta).
   Predicted Return Density   
       Returns  
Cigna Corp's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how cigna stock's price will differ from the mean after some time.To get its calculation, you should first determine the mean price during the specified period then subtract that from each price point.

What Drives a Cigna Corp Price Volatility?

Several factors can influence a stock's market volatility:

Industry

Specific events can influence volatility within a particular industry. For instance, a significant weather upheaval in a crucial oil-production site may cause oil prices to increase in the oil sector. The direct result will be the rise in the stock price of oil distribution companies. Similarly, any government regulation in a specific industry could negatively influence stock prices due to increased regulations on compliance that may impact the company's future earnings and growth.

Political and Economic environment

When governments make significant decisions regarding trade agreements, policies, and legislation regarding specific industries, they will influence stock prices. Everything from speeches to elections may influence investors, who can directly influence the stock prices in any particular industry. The prevailing economic situation also plays a significant role in stock prices. When the economy is doing well, investors will have a positive reaction and hence, better stock prices and vice versa.

The Company's Performance

Sometimes volatility will only affect an individual company. For example, a revolutionary product launch or strong earnings report may attract many investors to purchase the company. This positive attention will raise the company's stock price. In contrast, product recalls and data breaches may negatively influence a company's stock prices.

Cigna Corp Stock Risk Measures

Allowing for the 90-day total investment horizon the coefficient of variation of Cigna Corp is 426.22. The daily returns are distributed with a variance of 1.35 and standard deviation of 1.16. The mean deviation of Cigna Corp is currently at 0.78. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.56
α
Alpha over NYSE Composite
0.27
β
Beta against NYSE Composite0.25
σ
Overall volatility
1.16
Ir
Information ratio 0.15

Cigna Corp Stock Return Volatility

Cigna Corp historical daily return volatility represents how much of Cigna Corp stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm accepts 1.1629% volatility on return distribution over the 90 days horizon. By contrast, NYSE Composite accepts 0.573% volatility on return distribution over the 90 days horizon.
 Performance 
       Timeline  

About Cigna Corp Volatility

Volatility is a rate at which the price of Cigna Corp or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Cigna Corp may increase or decrease. In other words, similar to Cigna's beta indicator, it measures the risk of Cigna Corp and helps estimate the fluctuations that may happen in a short period of time. So if prices of Cigna Corp fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility.
Please read more on our technical analysis page.
Cigna Corporation provides insurance and related products and services in the United States. The company was founded in 1792 and is headquartered in Bloomfield, Connecticut. Cigna Corp operates under Healthcare Plans classification in the United States and is traded on New York Stock Exchange. It employs 72226 people.
Cigna Corp's stock volatility refers to the amount of uncertainty or risk involved with the size of changes in its stock's price. It is a statistical measure of the dispersion of returns on Cigna Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Cigna Corp's price varies over time.

3 ways to utilize Cigna Corp's volatility to invest better

Higher Cigna Corp's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Cigna Corp stock is relatively stable. Investors and traders use stock volatility as an indicator of risk and potential reward, as stocks with higher volatility can offer the potential for more significant returns but also come with a greater risk of losses. Cigna Corp stock volatility can provide helpful information for making investment decisions in the following ways:
  • Measuring Risk: Volatility can be used as a measure of risk, which can help you determine the potential fluctuations in the value of Cigna Corp investment. A higher volatility means higher risk and potentially larger changes in value.
  • Identifying Opportunities: High volatility in Cigna Corp's stock can indicate that there is potential for significant price movements, either up or down, which could present investment opportunities.
  • Diversification: Understanding how the volatility of Cigna Corp's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Remember it's essential to remember that stock volatility is just one of many factors to consider when making investment decisions, and it should be used in conjunction with other fundamental and technical analysis tools.

Cigna Corp Investment Opportunity

Cigna Corp has a volatility of 1.16 and is 2.04 times more volatile than NYSE Composite. 10 percent of all equities and portfolios are less risky than Cigna Corp. You can use Cigna Corp to protect your portfolios against small market fluctuations. The stock experiences a normal downward trend and little activity. Check odds of Cigna Corp to be traded at $359.56 in 90 days.

Average diversification

The correlation between Cigna Corp and NYA is 0.12 (i.e., Average diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Cigna Corp and NYA in the same portfolio, assuming nothing else is changed.

Cigna Corp Additional Risk Indicators

The analysis of Cigna Corp's secondary risk indicators is one of the essential steps in making a buy or sell decision. The process involves identifying the amount of risk involved in Cigna Corp's investment and either accepting that risk or mitigating it. Along with some common measures of Cigna Corp stock's risk such as standard deviation, beta, or value at risk, we also provide a set of secondary indicators that can assist in the individual investment decision or help in hedging the risk of your existing portfolios.
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential stocks, we recommend comparing similar stocks with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.

Cigna Corp Suggested Diversification Pairs

Pair trading is one of the very effective strategies used by professional day traders and hedge funds capitalizing on short-time and mid-term market inefficiencies. The approach is based on the fact that the ratio of prices of two correlating shares is long-term stable and oscillates around the average value. If the correlation ratio comes outside the common area, you can speculate with a high success rate that the ratio will return to the mean value and collect a profit.
The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against Cigna Corp as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. Cigna Corp's systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, Cigna Corp's unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to Cigna Corp.
When determining whether Cigna Corp offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Cigna Corp's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Cigna Corp Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Cigna Corp Stock:
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Cigna Corp. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in gross domestic product.
For more detail on how to invest in Cigna Stock please use our How to Invest in Cigna Corp guide.
You can also try the Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.

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Is Cigna Corp's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Cigna Corp. If investors know Cigna will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Cigna Corp listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.10)
Dividend Share
4.92
Earnings Share
17.4
Revenue Per Share
664.145
Quarterly Revenue Growth
0.116
The market value of Cigna Corp is measured differently than its book value, which is the value of Cigna that is recorded on the company's balance sheet. Investors also form their own opinion of Cigna Corp's value that differs from its market value or its book value, called intrinsic value, which is Cigna Corp's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Cigna Corp's market value can be influenced by many factors that don't directly affect Cigna Corp's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Cigna Corp's value and its price as these two are different measures arrived at by different means. Investors typically determine if Cigna Corp is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Cigna Corp's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.