Correlation Between Myndai, and Cigna Corp

Can any of the company-specific risk be diversified away by investing in both Myndai, 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 Myndai, and Cigna Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Myndai, and Cigna Corp, you can compare the effects of market volatilities on Myndai, 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 Myndai, with a short position of Cigna Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Myndai, and Cigna Corp.

Diversification Opportunities for Myndai, and Cigna Corp

-0.63

Correlation Coefficient

Myndai,  Cigna Corp

Excellent diversification

The 3 months correlation between Myndai, and Cigna is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Myndai, and Cigna Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cigna Corp and Myndai, 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 Myndai, 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 Myndai, i.e., Myndai, and Cigna Corp go up and down completely randomly.

Pair Corralation between Myndai, and Cigna Corp

Given the investment horizon of 90 days Myndai, is expected to under-perform the Cigna Corp. In addition to that, Myndai, is 2.37 times more volatile than Cigna Corp. It trades about -0.32 of its total potential returns per unit of risk. Cigna Corp is currently generating about 0.17 per unit of volatility. If you would invest  27,379  in Cigna Corp on December 28, 2024 and sell it today you would earn a total of  5,095  from holding Cigna Corp or generate 18.61% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Myndai,  vs.  Cigna Corp

Myndai,

Risk-Adjusted Performance

Very Weak

Over the last 90 days Myndai, has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Cigna Corp

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Cigna Corp are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite fairly abnormal forward indicators, Cigna Corp demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Myndai, and Cigna Corp

The main advantage of trading using opposite Myndai, and Cigna Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Myndai, 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.

The idea behind Myndai, and Cigna Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.