Correlation Between Cisco Systems and COMCAST
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By analyzing existing cross correlation between Cisco Systems and COMCAST P NEW, you can compare the effects of market volatilities on Cisco Systems and COMCAST 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 COMCAST. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cisco Systems and COMCAST.
Diversification Opportunities for Cisco Systems and COMCAST
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cisco and COMCAST is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Cisco Systems and COMCAST P NEW in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COMCAST P NEW 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 COMCAST. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COMCAST P NEW has no effect on the direction of Cisco Systems i.e., Cisco Systems and COMCAST go up and down completely randomly.
Pair Corralation between Cisco Systems and COMCAST
Given the investment horizon of 90 days Cisco Systems is expected to generate 1.39 times less return on investment than COMCAST. But when comparing it to its historical volatility, Cisco Systems is 1.73 times less risky than COMCAST. It trades about 0.21 of its potential returns per unit of risk. COMCAST P NEW is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 9,095 in COMCAST P NEW on August 26, 2024 and sell it today you would earn a total of 481.00 from holding COMCAST P NEW or generate 5.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 77.27% |
| Values | Daily Returns |
Cisco Systems vs. COMCAST P NEW
Performance |
| Timeline |
| Cisco Systems |
| COMCAST P NEW |
Cisco Systems and COMCAST Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cisco Systems and COMCAST
The main advantage of trading using opposite Cisco Systems and COMCAST positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cisco Systems position performs unexpectedly, COMCAST 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 COMCAST will offset losses from the drop in COMCAST's long position.| Cisco Systems vs. Ichor Holdings | Cisco Systems vs. Fabrinet | Cisco Systems vs. Hello Group | Cisco Systems vs. Ultra Clean Holdings |
| COMCAST vs. The Coca Cola | COMCAST vs. JPMorgan Chase Co | COMCAST vs. Dupont De Nemours | COMCAST vs. Alcoa 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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