Correlation Between Cambium Networks and Cisco Systems
Can any of the company-specific risk be diversified away by investing in both Cambium Networks and Cisco Systems 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 Cambium Networks and Cisco Systems into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cambium Networks Corp and Cisco Systems, you can compare the effects of market volatilities on Cambium Networks and Cisco Systems 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 Cambium Networks with a short position of Cisco Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cambium Networks and Cisco Systems.
Diversification Opportunities for Cambium Networks and Cisco Systems
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cambium and Cisco is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Cambium Networks Corp and Cisco Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cisco Systems and Cambium Networks 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 Cambium Networks Corp are associated (or correlated) with Cisco Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cisco Systems has no effect on the direction of Cambium Networks i.e., Cambium Networks and Cisco Systems go up and down completely randomly.
Pair Corralation between Cambium Networks and Cisco Systems
Given the investment horizon of 90 days Cambium Networks Corp is expected to under-perform the Cisco Systems. In addition to that, Cambium Networks is 4.81 times more volatile than Cisco Systems. It trades about -0.06 of its total potential returns per unit of risk. Cisco Systems is currently generating about 0.3 per unit of volatility. If you would invest 5,583 in Cisco Systems on September 4, 2024 and sell it today you would earn a total of 365.00 from holding Cisco Systems or generate 6.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cambium Networks Corp vs. Cisco Systems
Performance |
| Timeline |
| Cambium Networks Corp |
| Cisco Systems |
Cambium Networks and Cisco Systems Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cambium Networks and Cisco Systems
The main advantage of trading using opposite Cambium Networks and Cisco Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cambium Networks position performs unexpectedly, Cisco Systems 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 Cisco Systems will offset losses from the drop in Cisco Systems' long position.| Cambium Networks vs. Aviat Networks | Cambium Networks vs. Rimini Street | Cambium Networks vs. Airgain | Cambium Networks vs. Calix Inc |
| Cisco Systems vs. Cambium Networks Corp | Cisco Systems vs. KVH Industries | Cisco Systems vs. Knowles Cor | Cisco Systems vs. Ituran Location and |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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