Correlation Between Magellan Health and Cigna Corp
Can any of the company-specific risk be diversified away by investing in both Magellan 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 Magellan 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 Magellan Health and Cigna Corp, you can compare the effects of market volatilities on Magellan 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 Magellan Health with a short position of Cigna Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Magellan Health and Cigna Corp.
Diversification Opportunities for Magellan Health and Cigna Corp
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Magellan and Cigna is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Magellan Health and Cigna Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cigna Corp and Magellan 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 Magellan Health 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 Magellan Health i.e., Magellan Health and Cigna Corp go up and down completely randomly.
Pair Corralation between Magellan Health and Cigna Corp
If you would invest 33,374 in Cigna Corp on December 30, 2023 and sell it today you would earn a total of 2,945 from holding Cigna Corp or generate 8.82% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Magellan Health vs. Cigna Corp
Performance |
Timeline |
Magellan Health |
Risk-Adjusted Performance
0 of 100
Low | High |
Very Weak
Cigna Corp |
Magellan Health and Cigna Corp Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Magellan Health and Cigna Corp
The main advantage of trading using opposite Magellan Health and Cigna Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Magellan 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.Magellan Health vs. United Airlines Holdings | Magellan Health vs. DR Horton | Magellan Health vs. Old Dominion Freight | Magellan Health vs. Skyline |
Cigna Corp vs. Marpai Inc | Cigna Corp vs. NeueHealth | Cigna Corp vs. Oscar Health | Cigna Corp vs. Alignment Healthcare LLC |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
CEOs Directory Screen CEOs from public companies around the world | |
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |