Correlation Between Cisco Systems and Pingtan Marine
Can any of the company-specific risk be diversified away by investing in both Cisco Systems and Pingtan Marine 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 Pingtan Marine into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cisco Systems and Pingtan Marine Enterprise, you can compare the effects of market volatilities on Cisco Systems and Pingtan Marine 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 Pingtan Marine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cisco Systems and Pingtan Marine.
Diversification Opportunities for Cisco Systems and Pingtan Marine
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cisco and Pingtan is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Cisco Systems and Pingtan Marine Enterprise in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pingtan Marine Enterprise 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 Pingtan Marine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pingtan Marine Enterprise has no effect on the direction of Cisco Systems i.e., Cisco Systems and Pingtan Marine go up and down completely randomly.
Pair Corralation between Cisco Systems and Pingtan Marine
Given the investment horizon of 90 days Cisco Systems is expected to generate 0.11 times more return on investment than Pingtan Marine. However, Cisco Systems is 8.92 times less risky than Pingtan Marine. It trades about 0.05 of its potential returns per unit of risk. Pingtan Marine Enterprise is currently generating about -0.08 per unit of risk. If you would invest 4,665 in Cisco Systems on September 3, 2024 and sell it today you would earn a total of 1,278 from holding Cisco Systems or generate 27.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 12.32% |
| Values | Daily Returns |
Cisco Systems vs. Pingtan Marine Enterprise
Performance |
| Timeline |
| Cisco Systems |
| Pingtan Marine Enterprise |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Cisco Systems and Pingtan Marine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cisco Systems and Pingtan Marine
The main advantage of trading using opposite Cisco Systems and Pingtan Marine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cisco Systems position performs unexpectedly, Pingtan Marine 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 Pingtan Marine will offset losses from the drop in Pingtan Marine's long position.| Cisco Systems vs. Highway Holdings Limited | Cisco Systems vs. QCR Holdings | Cisco Systems vs. Partner Communications | Cisco Systems vs. Acumen Pharmaceuticals |
| Pingtan Marine vs. Vistra Energy Corp | Pingtan Marine vs. GE Vernova LLC | Pingtan Marine vs. Mid Atlantic Home Health | Pingtan Marine vs. Black Hills |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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