Correlation Between Cigna Corp and Express Scripts
Can any of the company-specific risk be diversified away by investing in both Cigna Corp and Express Scripts 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 Cigna Corp and Express Scripts into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cigna Corp and Express Scripts Holding, you can compare the effects of market volatilities on Cigna Corp and Express Scripts 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 Corp with a short position of Express Scripts. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cigna Corp and Express Scripts.
Diversification Opportunities for Cigna Corp and Express Scripts
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cigna and Express is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Cigna Corp and Express Scripts Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Express Scripts Holding and Cigna Corp 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 Corp are associated (or correlated) with Express Scripts. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Express Scripts Holding has no effect on the direction of Cigna Corp i.e., Cigna Corp and Express Scripts go up and down completely randomly.
Pair Corralation between Cigna Corp and Express Scripts
If you would invest (100.00) in Express Scripts Holding on January 26, 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 |
Cigna Corp vs. Express Scripts Holding
Performance |
| Timeline |
| Cigna Corp |
| Express Scripts Holding |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Cigna Corp and Express Scripts Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cigna Corp and Express Scripts
The main advantage of trading using opposite Cigna Corp and Express Scripts positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cigna Corp position performs unexpectedly, Express Scripts 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 Express Scripts will offset losses from the drop in Express Scripts' long position.The idea behind Cigna Corp and Express Scripts Holding pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Express Scripts vs. AmTrust Financial Services | Express Scripts vs. The Coca Cola | Express Scripts vs. Keurig Dr Pepper | Express Scripts vs. Commonwealth Bank of |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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