Correlation Between FTAC Emerald and CIGNA

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both FTAC Emerald and CIGNA 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 FTAC Emerald and CIGNA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FTAC Emerald Acquisition and CIGNA P, you can compare the effects of market volatilities on FTAC Emerald 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 FTAC Emerald with a short position of CIGNA. Check out your portfolio center. Please also check ongoing floating volatility patterns of FTAC Emerald and CIGNA.

Diversification Opportunities for FTAC Emerald and CIGNA

-0.64
  Correlation Coefficient

Excellent diversification

The 3 months correlation between FTAC and CIGNA is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding FTAC Emerald Acquisition and CIGNA P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CIGNA P and FTAC Emerald 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 FTAC Emerald Acquisition 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 P has no effect on the direction of FTAC Emerald i.e., FTAC Emerald and CIGNA go up and down completely randomly.

Pair Corralation between FTAC Emerald and CIGNA

Assuming the 90 days horizon FTAC Emerald Acquisition is expected to under-perform the CIGNA. In addition to that, FTAC Emerald is 22.37 times more volatile than CIGNA P. It trades about -0.01 of its total potential returns per unit of risk. CIGNA P is currently generating about -0.1 per unit of volatility. If you would invest  7,912  in CIGNA P on March 6, 2024 and sell it today you would lose (341.00) from holding CIGNA P or give up 4.31% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy46.15%
ValuesDaily Returns

FTAC Emerald Acquisition  vs.  CIGNA P

 Performance 
       Timeline  
FTAC Emerald Acquisition 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days FTAC Emerald Acquisition has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's fundamental indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the venture sophisticated investors.
CIGNA P 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days CIGNA P has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, CIGNA is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

FTAC Emerald and CIGNA Volatility Contrast

   Predicted Return Density   
       Returns  
Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions
 
Feedback Blog
Made with optimal in San Francisco
2024 Macroaxis LLC
COMMON DESTINATIONS
MAIN CATEGORIES
COMPANY