Correlation Between Cisco Systems and ContraFect Corp
Can any of the company-specific risk be diversified away by investing in both Cisco Systems and ContraFect 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 Cisco Systems and ContraFect Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cisco Systems and ContraFect Corp, you can compare the effects of market volatilities on Cisco Systems and ContraFect 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 Cisco Systems with a short position of ContraFect Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cisco Systems and ContraFect Corp.
Diversification Opportunities for Cisco Systems and ContraFect Corp
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cisco and ContraFect is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Cisco Systems and ContraFect Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ContraFect Corp 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 ContraFect Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ContraFect Corp has no effect on the direction of Cisco Systems i.e., Cisco Systems and ContraFect Corp go up and down completely randomly.
Pair Corralation between Cisco Systems and ContraFect Corp
If you would invest 4,894 in Cisco Systems on January 14, 2025 and sell it today you would earn a total of 884.00 from holding Cisco Systems or generate 18.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Cisco Systems vs. ContraFect Corp
Performance |
| Timeline |
| Cisco Systems |
| ContraFect Corp |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Cisco Systems and ContraFect Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cisco Systems and ContraFect Corp
The main advantage of trading using opposite Cisco Systems and ContraFect Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cisco Systems position performs unexpectedly, ContraFect 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 ContraFect Corp will offset losses from the drop in ContraFect Corp's long position.| Cisco Systems vs. Juniper Networks | Cisco Systems vs. Nokia Corp ADR | Cisco Systems vs. Motorola Solutions | Cisco Systems vs. Ciena Corp |
| ContraFect Corp vs. Palisade Bio | ContraFect Corp vs. Allarity Therapeutics | ContraFect Corp vs. Cns Pharmaceuticals | ContraFect Corp vs. Windtree Therapeutics |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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