Correlation Between Aditxt and Cigna Corp
Can any of the company-specific risk be diversified away by investing in both Aditxt and Cigna Corp 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 Aditxt and Cigna Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aditxt Inc and Cigna Corp, you can compare the effects of market volatilities on Aditxt and Cigna Corp 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 Aditxt with a short position of Cigna Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aditxt and Cigna Corp.
Diversification Opportunities for Aditxt and Cigna Corp
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Aditxt and Cigna is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Aditxt Inc and Cigna Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cigna Corp and Aditxt 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 Aditxt Inc are associated (or correlated) with Cigna Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cigna Corp has no effect on the direction of Aditxt i.e., Aditxt and Cigna Corp go up and down completely randomly.
Pair Corralation between Aditxt and Cigna Corp
Given the investment horizon of 90 days Aditxt Inc is expected to under-perform the Cigna Corp. In addition to that, Aditxt is 5.5 times more volatile than Cigna Corp. It trades about -0.24 of its total potential returns per unit of risk. Cigna Corp is currently generating about -0.21 per unit of volatility. If you would invest 35,798 in Cigna Corp on February 7, 2024 and sell it today you would lose (1,557) from holding Cigna Corp or give up 4.35% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Aditxt Inc vs. Cigna Corp
Performance |
Timeline |
Aditxt Inc |
Cigna Corp |
Aditxt and Cigna Corp Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Aditxt and Cigna Corp
The main advantage of trading using opposite Aditxt and Cigna Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aditxt position performs unexpectedly, Cigna Corp 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 Cigna Corp will offset losses from the drop in Cigna Corp's long position.Aditxt vs. Veritas Pharma | Aditxt vs. Sangui Biotech International | Aditxt vs. Raphael Pharmaceutical | Aditxt vs. GelStat Corp |
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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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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