Correlation Between Cencora and Cigna Corp
Can any of the company-specific risk be diversified away by investing in both Cencora and Cigna Corp 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 Cencora and Cigna Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cencora and Cigna Corp, you can compare the effects of market volatilities on Cencora and Cigna Corp 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 Cencora with a short position of Cigna Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cencora and Cigna Corp.
Diversification Opportunities for Cencora and Cigna Corp
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cencora and Cigna is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Cencora and Cigna Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cigna Corp and Cencora 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 Cencora are associated (or correlated) with Cigna Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cigna Corp has no effect on the direction of Cencora i.e., Cencora and Cigna Corp go up and down completely randomly.
Pair Corralation between Cencora and Cigna Corp
Considering the 90-day investment horizon Cencora is expected to generate 0.53 times more return on investment than Cigna Corp. However, Cencora is 1.89 times less risky than Cigna Corp. It trades about 0.14 of its potential returns per unit of risk. Cigna Corp is currently generating about -0.05 per unit of risk. If you would invest 29,737 in Cencora on September 8, 2025 and sell it today you would earn a total of 4,229 from holding Cencora or generate 14.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cencora vs. Cigna Corp
Performance |
| Timeline |
| Cencora |
| Cigna Corp |
Cencora and Cigna Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cencora and Cigna Corp
The main advantage of trading using opposite Cencora and Cigna Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cencora position performs unexpectedly, Cigna Corp 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 Cigna Corp will offset losses from the drop in Cigna Corp's long position.| Cencora vs. EvoAir Holdings | Cencora vs. Yooma Wellness | Cencora vs. Vice Health and | Cencora vs. Westinghouse Air Brake |
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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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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