Correlation Between Integra LifeSciences and Cigna Corp
Can any of the company-specific risk be diversified away by investing in both Integra LifeSciences 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 Integra LifeSciences and Cigna Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Integra LifeSciences Holdings and Cigna Corp, you can compare the effects of market volatilities on Integra LifeSciences 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 Integra LifeSciences with a short position of Cigna Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integra LifeSciences and Cigna Corp.
Diversification Opportunities for Integra LifeSciences and Cigna Corp
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Integra and Cigna is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Integra LifeSciences Holdings and Cigna Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cigna Corp and Integra LifeSciences 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 Integra LifeSciences Holdings 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 Integra LifeSciences i.e., Integra LifeSciences and Cigna Corp go up and down completely randomly.
Pair Corralation between Integra LifeSciences and Cigna Corp
Given the investment horizon of 90 days Integra LifeSciences Holdings is expected to generate 0.67 times more return on investment than Cigna Corp. However, Integra LifeSciences Holdings is 1.49 times less risky than Cigna Corp. It trades about -0.3 of its potential returns per unit of risk. Cigna Corp is currently generating about -0.31 per unit of risk. If you would invest 2,424 in Integra LifeSciences Holdings on September 24, 2024 and sell it today you would lose (244.00) from holding Integra LifeSciences Holdings or give up 10.07% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Integra LifeSciences Holdings vs. Cigna Corp
Performance |
Timeline |
Integra LifeSciences |
Cigna Corp |
Integra LifeSciences and Cigna Corp Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Integra LifeSciences and Cigna Corp
The main advantage of trading using opposite Integra LifeSciences and Cigna Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integra LifeSciences 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.Integra LifeSciences vs. Cigna Corp | Integra LifeSciences vs. Definitive Healthcare Corp | Integra LifeSciences vs. Guardant Health | Integra LifeSciences vs. Laboratory of |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
CEOs Directory Screen CEOs from public companies around the world | |
Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
Economic Indicators Top statistical indicators that provide insights into how an economy is performing |