Correlation Between Express Scripts and Cigna Corp
Can any of the company-specific risk be diversified away by investing in both Express Scripts 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 Express Scripts and Cigna Corp 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 Cigna Corp, you can compare the effects of market volatilities on Express Scripts 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 Express Scripts with a short position of Cigna Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Express Scripts and Cigna Corp.
Diversification Opportunities for Express Scripts and Cigna Corp
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Express and Cigna is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Express Scripts Holding and Cigna Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cigna Corp 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 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 Express Scripts i.e., Express Scripts and Cigna Corp go up and down completely randomly.
Pair Corralation between Express Scripts and Cigna Corp
If you would invest (100.00) in Express Scripts Holding on January 20, 2024 and sell it today you would earn a total of 100.00 from holding Express Scripts Holding or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Express Scripts Holding vs. Cigna Corp
Performance |
| Timeline |
| Express Scripts Holding |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Cigna Corp |
Express Scripts and Cigna Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Express Scripts and Cigna Corp
The main advantage of trading using opposite Express Scripts and Cigna Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Express Scripts 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.| Express Scripts vs. Eastman Chemical | Express Scripts vs. Sensient Technologies | Express Scripts vs. Luxfer Holdings PLC | Express Scripts vs. Ecovyst |
| Cigna Corp vs. Certara | Cigna Corp vs. HealthStream | Cigna Corp vs. Evolent Health | Cigna Corp vs. Streamline Health Solutions |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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