Correlation Between Cisco Systems and COMCAST
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By analyzing existing cross correlation between Cisco Systems and COMCAST PORATION, 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
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cisco and COMCAST is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Cisco Systems and COMCAST PORATION in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COMCAST PORATION 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 PORATION 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 1.79 times more return on investment than COMCAST. However, Cisco Systems is 1.79 times more volatile than COMCAST PORATION. It trades about 0.26 of its potential returns per unit of risk. COMCAST PORATION is currently generating about -0.15 per unit of risk. If you would invest 5,568 in Cisco Systems on August 30, 2024 and sell it today you would earn a total of 361.00 from holding Cisco Systems or generate 6.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Cisco Systems vs. COMCAST PORATION
Performance |
| Timeline |
| Cisco Systems |
| COMCAST PORATION |
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. Juniper Networks | Cisco Systems vs. Nokia Corp ADR | Cisco Systems vs. Motorola Solutions | Cisco Systems vs. Ciena Corp |
| COMCAST vs. Udemy Inc | COMCAST vs. 17 Education Technology | COMCAST vs. Kura Sushi USA | COMCAST vs. Shake Shack |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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