Correlation Between Aetna and Benefytt Technologies
Can any of the company-specific risk be diversified away by investing in both Aetna and Benefytt Technologies 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 Aetna and Benefytt Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aetna Inc and Benefytt Technologies, you can compare the effects of market volatilities on Aetna and Benefytt Technologies 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 Aetna with a short position of Benefytt Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aetna and Benefytt Technologies.
Diversification Opportunities for Aetna and Benefytt Technologies
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aetna and Benefytt is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Aetna Inc and Benefytt Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Benefytt Technologies and Aetna 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 Aetna Inc are associated (or correlated) with Benefytt Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Benefytt Technologies has no effect on the direction of Aetna i.e., Aetna and Benefytt Technologies go up and down completely randomly.
Pair Corralation between Aetna and Benefytt Technologies
If you would invest 0.00 in Benefytt Technologies on January 20, 2024 and sell it today you would earn a total of 0.00 from holding Benefytt Technologies or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Aetna Inc vs. Benefytt Technologies
Performance |
| Timeline |
| Aetna Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Benefytt Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Aetna and Benefytt Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aetna and Benefytt Technologies
The main advantage of trading using opposite Aetna and Benefytt Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aetna position performs unexpectedly, Benefytt Technologies 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 Benefytt Technologies will offset losses from the drop in Benefytt Technologies' long position.| Aetna vs. HCA Holdings | Aetna vs. Zillow Group Class | Aetna vs. Northern Lights | Aetna vs. VanEck Vectors Moodys |
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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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