Correlation Between Cisco Systems and Greencity Acquisition
Can any of the company-specific risk be diversified away by investing in both Cisco Systems and Greencity Acquisition 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 Greencity Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cisco Systems and Greencity Acquisition Corp, you can compare the effects of market volatilities on Cisco Systems and Greencity Acquisition 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 Greencity Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cisco Systems and Greencity Acquisition.
Diversification Opportunities for Cisco Systems and Greencity Acquisition
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cisco and Greencity is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Cisco Systems and Greencity Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greencity Acquisition 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 Greencity Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greencity Acquisition has no effect on the direction of Cisco Systems i.e., Cisco Systems and Greencity Acquisition go up and down completely randomly.
Pair Corralation between Cisco Systems and Greencity Acquisition
If you would invest 4,590 in Cisco Systems on August 30, 2024 and sell it today you would earn a total of 1,339 from holding Cisco Systems or generate 29.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 0.79% |
| Values | Daily Returns |
Cisco Systems vs. Greencity Acquisition Corp
Performance |
| Timeline |
| Cisco Systems |
| Greencity Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Cisco Systems and Greencity Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cisco Systems and Greencity Acquisition
The main advantage of trading using opposite Cisco Systems and Greencity Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cisco Systems position performs unexpectedly, Greencity Acquisition 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 Greencity Acquisition will offset losses from the drop in Greencity Acquisition'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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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