Correlation Between Express Scripts and Aetna
Can any of the company-specific risk be diversified away by investing in both Express Scripts and Aetna 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 Express Scripts and Aetna into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Express Scripts Holding and Aetna Inc, you can compare the effects of market volatilities on Express Scripts and Aetna 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 Express Scripts with a short position of Aetna. Check out your portfolio center. Please also check ongoing floating volatility patterns of Express Scripts and Aetna.
Diversification Opportunities for Express Scripts and Aetna
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Express and Aetna is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Express Scripts Holding and Aetna Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aetna Inc and Express Scripts 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 Express Scripts Holding are associated (or correlated) with Aetna. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aetna Inc has no effect on the direction of Express Scripts i.e., Express Scripts and Aetna go up and down completely randomly.
Pair Corralation between Express Scripts and Aetna
If you would invest (100.00) in Aetna Inc on January 26, 2024 and sell it today you would earn a total of 100.00 from holding Aetna Inc or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Express Scripts Holding vs. Aetna Inc
Performance |
| Timeline |
| Express Scripts Holding |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Aetna Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Express Scripts and Aetna Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Express Scripts and Aetna
The main advantage of trading using opposite Express Scripts and Aetna positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Express Scripts position performs unexpectedly, Aetna 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 Aetna will offset losses from the drop in Aetna's long position.| Express Scripts vs. Japan Tobacco ADR | Express Scripts vs. WPP PLC ADR | Express Scripts vs. Magnite | Express Scripts vs. BRC Inc |
| Aetna vs. HCA Holdings | Aetna vs. Zillow Group Class | Aetna vs. Northern Lights | Aetna vs. VanEck Vectors Moodys |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |