Correlation Between Cisco Systems and AMGEN
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By analyzing existing cross correlation between Cisco Systems and AMGEN INC, you can compare the effects of market volatilities on Cisco Systems and AMGEN 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 AMGEN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cisco Systems and AMGEN.
Diversification Opportunities for Cisco Systems and AMGEN
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cisco and AMGEN is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding Cisco Systems and AMGEN INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMGEN INC 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 AMGEN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMGEN INC has no effect on the direction of Cisco Systems i.e., Cisco Systems and AMGEN go up and down completely randomly.
Pair Corralation between Cisco Systems and AMGEN
Given the investment horizon of 90 days Cisco Systems is expected to generate 1.76 times more return on investment than AMGEN. However, Cisco Systems is 1.76 times more volatile than AMGEN INC. It trades about 0.1 of its potential returns per unit of risk. AMGEN INC is currently generating about -0.01 per unit of risk. If you would invest 4,778 in Cisco Systems on September 1, 2024 and sell it today you would earn a total of 1,143 from holding Cisco Systems or generate 23.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 98.94% |
| Values | Daily Returns |
Cisco Systems vs. AMGEN INC
Performance |
| Timeline |
| Cisco Systems |
| AMGEN INC |
Cisco Systems and AMGEN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cisco Systems and AMGEN
The main advantage of trading using opposite Cisco Systems and AMGEN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cisco Systems position performs unexpectedly, AMGEN 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 AMGEN will offset losses from the drop in AMGEN's long position.| Cisco Systems vs. Comtech Telecommunications Corp | Cisco Systems vs. KVH Industries | Cisco Systems vs. Silicom | Cisco Systems vs. Knowles Cor |
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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