Correlation Analysis Between CVS Health and Cigna

Analyzing existing cross correlation between CVS Health Corporation and Cigna Corporation. You can compare the effects of market volatilities on CVS Health and Cigna 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 CVS Health with a short position of Cigna. See also your portfolio center. Please also check ongoing floating volatility patterns of CVS Health and Cigna.
Horizon     30 Days    Login   to change
Symbolsvs
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Comparative Performance

CVS Health  
1111

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in CVS Health Corporation are ranked lower than 11 (%) of all global equities and portfolios over the last 30 days. In defiance of relatively fragile forward-looking signals, CVS Health reported solid returns over the last few months and may actually be approaching a breakup point.
Cigna  
1919

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Cigna Corporation are ranked lower than 19 (%) of all global equities and portfolios over the last 30 days. Despite nearly weak fundamental indicators, Cigna layed out solid returns over the last few months and may actually be approaching a breakup point.

CVS Health and Cigna Volatility Contrast

 Predicted Return Density 
    
  Returns 

CVS Health Corp.  vs.  Cigna Corp.

 Performance (%) 
    
  Timeline 

Pair Volatility

Considering 30-days investment horizon, CVS Health is expected to generate 1.75 times less return on investment than Cigna. But when comparing it to its historical volatility, CVS Health Corporation is 1.06 times less risky than Cigna. It trades about 0.17 of its potential returns per unit of risk. Cigna Corporation is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest  17,149  in Cigna Corporation on December 24, 2019 and sell it today you would earn a total of  4,121  from holding Cigna Corporation or generate 24.03% return on investment over 30 days.

Pair Corralation between CVS Health and Cigna

0.85
Time Period3 Months [change]
DirectionPositive 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for CVS Health and Cigna

CVS Health Corp. diversification synergy

Very poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding CVS Health Corp. and Cigna Corp. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Cigna and CVS 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 CVS Health Corporation are associated (or correlated) with Cigna. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cigna has no effect on the direction of CVS Health i.e. CVS Health and Cigna go up and down completely randomly.
See also your portfolio center. Please also try Portfolio Reporting module to create custom reports across your portfolios and generate quick suggestion pitch.