Correlation Between Cigna Corp and Align Technology
Can any of the company-specific risk be diversified away by investing in both Cigna Corp and Align Technology 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 Align Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cigna Corp and Align Technology, you can compare the effects of market volatilities on Cigna Corp and Align Technology 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 Align Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cigna Corp and Align Technology.
Diversification Opportunities for Cigna Corp and Align Technology
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cigna and Align is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Cigna Corp and Align Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Align Technology 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 Align Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Align Technology has no effect on the direction of Cigna Corp i.e., Cigna Corp and Align Technology go up and down completely randomly.
Pair Corralation between Cigna Corp and Align Technology
Allowing for the 90-day total investment horizon Cigna Corp is expected to under-perform the Align Technology. In addition to that, Cigna Corp is 1.13 times more volatile than Align Technology. It trades about -0.19 of its total potential returns per unit of risk. Align Technology is currently generating about 0.1 per unit of volatility. If you would invest 18,342 in Align Technology on April 22, 2025 and sell it today you would earn a total of 562.00 from holding Align Technology or generate 3.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cigna Corp vs. Align Technology
Performance |
| Timeline |
| Cigna Corp |
| Align Technology |
Cigna Corp and Align Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cigna Corp and Align Technology
The main advantage of trading using opposite Cigna Corp and Align Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cigna Corp position performs unexpectedly, Align Technology 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 Align Technology will offset losses from the drop in Align Technology's long position.| Cigna Corp vs. Elevance Health | Cigna Corp vs. UnitedHealth Group Incorporated | Cigna Corp vs. Centene Corp | Cigna Corp vs. Molina Healthcare |
| Align Technology vs. DexCom Inc | Align Technology vs. InMode | Align Technology vs. Edwards Lifesciences Corp | Align Technology vs. Insulet |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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