Correlation Between Cisco Systems and KraneShares Bosera
Can any of the company-specific risk be diversified away by investing in both Cisco Systems and KraneShares Bosera 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 KraneShares Bosera into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cisco Systems and KraneShares Bosera MSCI, you can compare the effects of market volatilities on Cisco Systems and KraneShares Bosera 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 KraneShares Bosera. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cisco Systems and KraneShares Bosera.
Diversification Opportunities for Cisco Systems and KraneShares Bosera
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cisco and KraneShares is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Cisco Systems and KraneShares Bosera MSCI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KraneShares Bosera MSCI 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 KraneShares Bosera. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KraneShares Bosera MSCI has no effect on the direction of Cisco Systems i.e., Cisco Systems and KraneShares Bosera go up and down completely randomly.
Pair Corralation between Cisco Systems and KraneShares Bosera
Given the investment horizon of 90 days Cisco Systems is expected to generate 0.8 times more return on investment than KraneShares Bosera. However, Cisco Systems is 1.25 times less risky than KraneShares Bosera. It trades about 0.05 of its potential returns per unit of risk. KraneShares Bosera MSCI is currently generating about 0.0 per unit of risk. If you would invest 4,566 in Cisco Systems on August 27, 2024 and sell it today you would earn a total of 1,289 from holding Cisco Systems or generate 28.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cisco Systems vs. KraneShares Bosera MSCI
Performance |
| Timeline |
| Cisco Systems |
| KraneShares Bosera MSCI |
Cisco Systems and KraneShares Bosera Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cisco Systems and KraneShares Bosera
The main advantage of trading using opposite Cisco Systems and KraneShares Bosera positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cisco Systems position performs unexpectedly, KraneShares Bosera 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 KraneShares Bosera will offset losses from the drop in KraneShares Bosera's long position.| Cisco Systems vs. Ichor Holdings | Cisco Systems vs. Fabrinet | Cisco Systems vs. Hello Group | Cisco Systems vs. Ultra Clean Holdings |
| KraneShares Bosera vs. Global X MSCI | KraneShares Bosera vs. KraneShares MSCI All | KraneShares Bosera vs. Xtrackers Harvest CSI |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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