Correlation Between Cisco Systems and Bausch
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By analyzing existing cross correlation between Cisco Systems and Bausch Health Companies, you can compare the effects of market volatilities on Cisco Systems and Bausch 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 Bausch. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cisco Systems and Bausch.
Diversification Opportunities for Cisco Systems and Bausch
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Cisco and Bausch is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Cisco Systems and Bausch Health Companies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bausch Health Companies 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 Bausch. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bausch Health Companies has no effect on the direction of Cisco Systems i.e., Cisco Systems and Bausch go up and down completely randomly.
Pair Corralation between Cisco Systems and Bausch
Given the investment horizon of 90 days Cisco Systems is expected to generate 0.55 times more return on investment than Bausch. However, Cisco Systems is 1.81 times less risky than Bausch. It trades about 0.3 of its potential returns per unit of risk. Bausch Health Companies is currently generating about 0.08 per unit of risk. If you would invest 5,583 in Cisco Systems on September 4, 2024 and sell it today you would earn a total of 365.00 from holding Cisco Systems or generate 6.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 52.38% |
| Values | Daily Returns |
Cisco Systems vs. Bausch Health Companies
Performance |
| Timeline |
| Cisco Systems |
| Bausch Health Companies |
Cisco Systems and Bausch Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cisco Systems and Bausch
The main advantage of trading using opposite Cisco Systems and Bausch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cisco Systems position performs unexpectedly, Bausch 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 Bausch will offset losses from the drop in Bausch's long position.| Cisco Systems vs. Cambium Networks Corp | Cisco Systems vs. KVH Industries | Cisco Systems vs. Knowles Cor | Cisco Systems vs. Ituran Location and |
| Bausch vs. Titan Machinery | Bausch vs. Pool Corporation | Bausch vs. Cedar Realty Trust | Bausch vs. Viemed Healthcare |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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