Correlation Between Cigna Corp and Sanara Medtech
Can any of the company-specific risk be diversified away by investing in both Cigna Corp and Sanara Medtech 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 Sanara Medtech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cigna Corp and Sanara Medtech, you can compare the effects of market volatilities on Cigna Corp and Sanara Medtech 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 Sanara Medtech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cigna Corp and Sanara Medtech.
Diversification Opportunities for Cigna Corp and Sanara Medtech
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cigna and Sanara is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Cigna Corp and Sanara Medtech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sanara Medtech 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 Sanara Medtech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sanara Medtech has no effect on the direction of Cigna Corp i.e., Cigna Corp and Sanara Medtech go up and down completely randomly.
Pair Corralation between Cigna Corp and Sanara Medtech
Allowing for the 90-day total investment horizon Cigna Corp is expected to generate 0.54 times more return on investment than Sanara Medtech. However, Cigna Corp is 1.87 times less risky than Sanara Medtech. It trades about 0.14 of its potential returns per unit of risk. Sanara Medtech is currently generating about -0.05 per unit of risk. If you would invest 28,020 in Cigna Corp on December 26, 2024 and sell it today you would earn a total of 4,103 from holding Cigna Corp or generate 14.64% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Cigna Corp vs. Sanara Medtech
Performance |
Timeline |
Cigna Corp |
Sanara Medtech |
Cigna Corp and Sanara Medtech Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Cigna Corp and Sanara Medtech
The main advantage of trading using opposite Cigna Corp and Sanara Medtech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cigna Corp position performs unexpectedly, Sanara Medtech 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 Sanara Medtech will offset losses from the drop in Sanara Medtech's long position.Cigna Corp vs. Elevance Health | Cigna Corp vs. UnitedHealth Group Incorporated | Cigna Corp vs. Centene Corp | Cigna Corp vs. Molina Healthcare |
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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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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