Correlation Between Cisco Systems and Atlantic Coastal
Can any of the company-specific risk be diversified away by investing in both Cisco Systems and Atlantic Coastal 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 Cisco Systems and Atlantic Coastal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cisco Systems and Atlantic Coastal Acquisition, you can compare the effects of market volatilities on Cisco Systems and Atlantic Coastal 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 Cisco Systems with a short position of Atlantic Coastal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cisco Systems and Atlantic Coastal.
Diversification Opportunities for Cisco Systems and Atlantic Coastal
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cisco and Atlantic is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Cisco Systems and Atlantic Coastal Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atlantic Coastal Acq and Cisco Systems 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 Cisco Systems are associated (or correlated) with Atlantic Coastal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atlantic Coastal Acq has no effect on the direction of Cisco Systems i.e., Cisco Systems and Atlantic Coastal go up and down completely randomly.
Pair Corralation between Cisco Systems and Atlantic Coastal
If you would invest 4,462 in Cisco Systems on January 13, 2025 and sell it today you would earn a total of 1,271 from holding Cisco Systems or generate 28.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Cisco Systems vs. Atlantic Coastal Acquisition
Performance |
| Timeline |
| Cisco Systems |
| Atlantic Coastal Acq |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Cisco Systems and Atlantic Coastal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cisco Systems and Atlantic Coastal
The main advantage of trading using opposite Cisco Systems and Atlantic Coastal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cisco Systems position performs unexpectedly, Atlantic Coastal 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 Atlantic Coastal will offset losses from the drop in Atlantic Coastal's long position.| Cisco Systems vs. Juniper Networks | Cisco Systems vs. Nokia Corp ADR | Cisco Systems vs. Motorola Solutions | Cisco Systems vs. Ciena Corp |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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