Correlation Between Cisco Systems and ANTHEM
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By analyzing existing cross correlation between Cisco Systems and ANTHEM INC 4101, you can compare the effects of market volatilities on Cisco Systems and ANTHEM 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 ANTHEM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cisco Systems and ANTHEM.
Diversification Opportunities for Cisco Systems and ANTHEM
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cisco and ANTHEM is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Cisco Systems and ANTHEM INC 4101 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANTHEM INC 4101 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 ANTHEM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ANTHEM INC 4101 has no effect on the direction of Cisco Systems i.e., Cisco Systems and ANTHEM go up and down completely randomly.
Pair Corralation between Cisco Systems and ANTHEM
Given the investment horizon of 90 days Cisco Systems is expected to generate 5.71 times more return on investment than ANTHEM. However, Cisco Systems is 5.71 times more volatile than ANTHEM INC 4101. It trades about 0.24 of its potential returns per unit of risk. ANTHEM INC 4101 is currently generating about -0.27 per unit of risk. If you would invest 5,262 in Cisco Systems on August 28, 2024 and sell it today you would earn a total of 612.00 from holding Cisco Systems or generate 11.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 97.62% |
| Values | Daily Returns |
Cisco Systems vs. ANTHEM INC 4101
Performance |
| Timeline |
| Cisco Systems |
| ANTHEM INC 4101 |
Cisco Systems and ANTHEM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cisco Systems and ANTHEM
The main advantage of trading using opposite Cisco Systems and ANTHEM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cisco Systems position performs unexpectedly, ANTHEM 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 ANTHEM will offset losses from the drop in ANTHEM's long position.| Cisco Systems vs. Ichor Holdings | Cisco Systems vs. Fabrinet | Cisco Systems vs. Hello Group | Cisco Systems vs. Ultra Clean Holdings |
| ANTHEM vs. AEP TEX INC | ANTHEM vs. US BANK NATIONAL | ANTHEM vs. Eat Beyond Global | ANTHEM vs. Charles Schwab 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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