Is Cigna Corp (NYSE:CI) a new disruptor?

It seems as Cigna Corp will continue to recover much faster as its share price surged up 1.53% today. The entity current daily volatility is 1.33 percent, with a beta of 0.63 and an alpha of 0.14 over DOW. While some baby boomers are getting worried about insurance, it is reasonable to concentrate on Cigna Corp. We will evaluate why recent Cigna Corp price moves suggest a bounce in June.
Published over a year ago
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Reviewed by Rifka Kats

Cigna Corp reports roughly 11.5 B in cash with 10.35 B of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 32.69.
On a scale of 0 to 100, Cigna Corp holds a performance score of 20. The firm shows a Beta (market volatility) of 0.6273, which signifies possible diversification benefits within a given portfolio. Let's try to break down what Cigna's beta means in this case. As returns on the market increase, Cigna Corp returns are expected to increase less than the market. However, during the bear market, the loss on holding Cigna Corp will be expected to be smaller as well. Although it is vital to follow Cigna Corp historical returns, it is good to be conservative about what you can do with the information regarding equity current trending patterns. The philosophy towards foreseeing future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By analyzing Cigna Corp technical indicators, you can presently evaluate if the expected return of 0.38% will be sustainable into the future. Please makes use of Cigna Corp coefficient of variation, maximum drawdown, skewness, as well as the relationship between the total risk alpha and downside variance to make a quick decision on whether Cigna Corp price patterns will revert.
Investing in Cigna Corp, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Cigna Corp along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Cigna Corp's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Cigna Corp. Your research has to be compared to or analyzed against Cigna Corp's peers to derive any actionable benefits. When done correctly, Cigna Corp's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in Cigna Corp.

How important is Cigna Corp's Liquidity

Cigna Corp financial leverage refers to using borrowed capital as a funding source to finance Cigna Corp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Cigna Corp financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Cigna Corp's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Cigna Corp's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Cigna Corp's total debt and its cash.

Cigna Corp Gross Profit

Cigna Corp Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Cigna Corp previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Cigna Corp Gross Profit growth over the last 10 years. Please check Cigna Corp's gross profit and other fundamental indicators for more details.

Cigna Corp Correlation with Peers

Investors in Cigna can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Cigna Corp. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Cigna Corp and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Cigna is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage. Please check volatility of Cigna for more details

Breaking down the case for Cigna Corp

Cigna Corp appears to be very steady, given 3 months investment horizon. Cigna Corp secures Sharpe Ratio (or Efficiency) of 0.29, which signifies that the company had 0.29% of return per unit of risk over the last 3 months. Our standpoint towards foreseeing the volatility of a stock is to use all available market data together with stock-specific technical indicators that cannot be diversified away. We have found twenty-eight technical indicators for Cigna Corp, which you can use to evaluate the future volatility of the firm. Please makes use of Cigna Corp's Risk Adjusted Performance of 0.128, downside deviation of 1.63, and Mean Deviation of 1.15 to double-check if our risk estimates are consistent with your expectations.
Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Some Cigna technical indicators suggest come-back

Variance is down to 2.41. It may hint to a possible volatility drop. Cigna Corp has relatively low volatility with skewness of -1.01 and kurtosis of 3.98. However, we advise all investors to independently investigate Cigna Corp to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Cigna Corp's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Cigna Corp's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Our Bottom Line On Cigna Corp

While many other companies within the healthcare plans industry are still a little expensive, even after the recent corrections, Cigna Corp may offer a potential longer-term growth to stockholders. While some next quarter oriented stockholders may not share our view, we believe it may not be a good time to purchase new shares of Cigna.

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Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of Cigna Corp. Please refer to our Terms of Use for any information regarding our disclosure principles.

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