Correlation Between Bright Health and Cigna Corp
Can any of the company-specific risk be diversified away by investing in both Bright Health 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 Bright Health and Cigna Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bright Health Group and Cigna Corp, you can compare the effects of market volatilities on Bright Health 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 Bright Health with a short position of Cigna Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bright Health and Cigna Corp.
Diversification Opportunities for Bright Health and Cigna Corp
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bright and Cigna is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bright Health Group and Cigna Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cigna Corp and Bright Health 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 Bright Health Group 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 Bright Health i.e., Bright Health and Cigna Corp go up and down completely randomly.
Pair Corralation between Bright Health and Cigna Corp
If you would invest (100.00) in Bright Health Group on December 1, 2024 and sell it today you would earn a total of 100.00 from holding Bright Health Group or generate -100.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Bright Health Group vs. Cigna Corp
Performance |
Timeline |
Bright Health Group |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Cigna Corp |
Bright Health and Cigna Corp Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bright Health and Cigna Corp
The main advantage of trading using opposite Bright Health and Cigna Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bright Health 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.Bright Health vs. Alignment Healthcare LLC | Bright Health vs. Molina Healthcare | Bright Health vs. Clover Health Investments | Bright Health vs. Centene Corp |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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