Correlation Analysis Between CVS Health and Cigna

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

CVS Health  

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in CVS Health Corporation are ranked lower than 14 (%) 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.

Risk-Adjusted Performance

Over the last 30 days Cigna Corporation has generated negative risk-adjusted returns adding no value to investors with long positions. 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 and Cigna Volatility Contrast

 Predicted Return Density 

CVS Health Corp.  vs.  Cigna Corp.

 Performance (%) 

Pair Volatility

Considering 30-days investment horizon, CVS Health Corporation is expected to generate 0.66 times more return on investment than Cigna. However, CVS Health Corporation is 1.52 times less risky than Cigna. It trades about 0.21 of its potential returns per unit of risk. Cigna Corporation is currently generating about 0.0 per unit of risk. If you would invest  5,267  in CVS Health Corporation on August 22, 2019 and sell it today you would earn a total of  1,163  from holding CVS Health Corporation or generate 22.08% return on investment over 30 days.

Pair Corralation between CVS Health and Cigna

Time Period3 Months [change]
ValuesDaily Returns

Diversification Opportunities for CVS Health and Cigna

CVS Health Corp. diversification synergy

Very good diversification

Overlapping area represents the amount of risk that can be diversified away by holding CVS Health Corp. and Cigna Corp. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Cigna and CVS Health 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 CVS Health Corporation are associated (or correlated) with Cigna. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cigna has no effect on the direction of CVS Health i.e. CVS Health and Cigna go up and down completely randomly.
See also your portfolio center. Please also try Commodity Channel Index module to use commodity channel index to analyze current equity momentum.