Correlation Between Cisco Systems and Actelis Networks
Can any of the company-specific risk be diversified away by investing in both Cisco Systems and Actelis Networks 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 Actelis Networks into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cisco Systems and Actelis Networks, you can compare the effects of market volatilities on Cisco Systems and Actelis Networks 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 Actelis Networks. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cisco Systems and Actelis Networks.
Diversification Opportunities for Cisco Systems and Actelis Networks
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cisco and Actelis is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Cisco Systems and Actelis Networks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Actelis Networks 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 Actelis Networks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Actelis Networks has no effect on the direction of Cisco Systems i.e., Cisco Systems and Actelis Networks go up and down completely randomly.
Pair Corralation between Cisco Systems and Actelis Networks
Given the investment horizon of 90 days Cisco Systems is expected to generate 0.36 times more return on investment than Actelis Networks. However, Cisco Systems is 2.77 times less risky than Actelis Networks. It trades about 0.27 of its potential returns per unit of risk. Actelis Networks is currently generating about -0.06 per unit of risk. If you would invest 5,528 in Cisco Systems on August 27, 2024 and sell it today you would earn a total of 346.00 from holding Cisco Systems or generate 6.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cisco Systems vs. Actelis Networks
Performance |
| Timeline |
| Cisco Systems |
| Actelis Networks |
Cisco Systems and Actelis Networks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cisco Systems and Actelis Networks
The main advantage of trading using opposite Cisco Systems and Actelis Networks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cisco Systems position performs unexpectedly, Actelis Networks 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 Actelis Networks will offset losses from the drop in Actelis Networks' long position.| Cisco Systems vs. Ichor Holdings | Cisco Systems vs. Fabrinet | Cisco Systems vs. Hello Group | Cisco Systems vs. Ultra Clean Holdings |
| Actelis Networks vs. Plexus Corp | Actelis Networks vs. Jabil Circuit | Actelis Networks vs. Sanmina | Actelis Networks vs. Methode Electronics |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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