Correlation Analysis Between Cigna and CVS Health

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

Cigna  
22

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Cigna Corporation are ranked lower than 2 (%) of all global equities and portfolios over the last 30 days. Despite nearly stable fundamental indicators, Cigna is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholder.
CVS Health  
1010

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in CVS Health Corporation are ranked lower than 10 (%) 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 and CVS Health Volatility Contrast

 Predicted Return Density 
      Returns 

Cigna Corp.  vs.  CVS Health Corp.

 Performance (%) 
      Timeline 

Pair Volatility

Allowing for the 30-days total investment horizon, Cigna is expected to generate 3.33 times less return on investment than CVS Health. In addition to that, Cigna is 1.42 times more volatile than CVS Health Corporation. It trades about 0.03 of its total potential returns per unit of risk. CVS Health Corporation is currently generating about 0.16 per unit of volatility. If you would invest  5,440  in CVS Health Corporation on August 18, 2019 and sell it today you would earn a total of  903.00  from holding CVS Health Corporation or generate 16.6% return on investment over 30 days.

Pair Corralation between Cigna and CVS Health

0.95
Time Period3 Months [change]
DirectionPositive 
StrengthVery Strong
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for Cigna and CVS Health

Cigna Corp. diversification synergy

Almost no diversification

Overlapping area represents the amount of risk that can be diversified away by holding Cigna Corp. and CVS Health Corp. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on CVS Health and Cigna 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 Cigna Corporation are associated (or correlated) with CVS Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CVS Health has no effect on the direction of Cigna i.e. Cigna and CVS Health go up and down completely randomly.
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