Correlation Between Cisco Systems and Agritek Holdings
Can any of the company-specific risk be diversified away by investing in both Cisco Systems and Agritek Holdings 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 Agritek Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cisco Systems and Agritek Holdings, you can compare the effects of market volatilities on Cisco Systems and Agritek Holdings 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 Agritek Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cisco Systems and Agritek Holdings.
Diversification Opportunities for Cisco Systems and Agritek Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cisco and Agritek is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Cisco Systems and Agritek Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agritek Holdings 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 Agritek Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agritek Holdings has no effect on the direction of Cisco Systems i.e., Cisco Systems and Agritek Holdings go up and down completely randomly.
Pair Corralation between Cisco Systems and Agritek Holdings
If you would invest 4,528 in Cisco Systems on September 3, 2024 and sell it today you would earn a total of 1,393 from holding Cisco Systems or generate 30.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cisco Systems vs. Agritek Holdings
Performance |
| Timeline |
| Cisco Systems |
| Agritek Holdings |
Cisco Systems and Agritek Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cisco Systems and Agritek Holdings
The main advantage of trading using opposite Cisco Systems and Agritek Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cisco Systems position performs unexpectedly, Agritek Holdings 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 Agritek Holdings will offset losses from the drop in Agritek Holdings' long position.| Cisco Systems vs. Highway Holdings Limited | Cisco Systems vs. QCR Holdings | Cisco Systems vs. Partner Communications | Cisco Systems vs. Acumen Pharmaceuticals |
| Agritek Holdings vs. Arhaus Inc | Agritek Holdings vs. Floor Decor Holdings | Agritek Holdings vs. Live Ventures | Agritek Holdings vs. Cisco Systems |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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