Correlation Between CVR Medical and Cigna Corp

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

Diversification Opportunities for CVR Medical and Cigna Corp

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between CVR and Cigna is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CVR Medical Corp and Cigna Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cigna Corp and CVR Medical 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 CVR Medical Corp 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 CVR Medical i.e., CVR Medical and Cigna Corp go up and down completely randomly.

Pair Corralation between CVR Medical and Cigna Corp

If you would invest  0.00  in CVR Medical Corp on September 4, 2025 and sell it today you would earn a total of  0.00  from holding CVR Medical Corp or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy96.88%
ValuesDaily Returns

CVR Medical Corp  vs.  Cigna Corp

 Performance 
       Timeline  
CVR Medical Corp 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days CVR Medical Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, CVR Medical is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.
Cigna Corp 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Cigna Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's forward indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

CVR Medical and Cigna Corp Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with CVR Medical and Cigna Corp

The main advantage of trading using opposite CVR Medical and Cigna Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CVR Medical 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.
The idea behind CVR Medical Corp and Cigna Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Transaction History module to view history of all your transactions and understand their impact on performance.

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