Correlation Between Cisco Systems and DEERE
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By analyzing existing cross correlation between Cisco Systems and DEERE CO, you can compare the effects of market volatilities on Cisco Systems and DEERE 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 DEERE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cisco Systems and DEERE.
Diversification Opportunities for Cisco Systems and DEERE
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cisco and DEERE is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Cisco Systems and DEERE CO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DEERE CO 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 DEERE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DEERE CO has no effect on the direction of Cisco Systems i.e., Cisco Systems and DEERE go up and down completely randomly.
Pair Corralation between Cisco Systems and DEERE
Given the investment horizon of 90 days Cisco Systems is expected to generate 1.14 times more return on investment than DEERE. However, Cisco Systems is 1.14 times more volatile than DEERE CO. It trades about 0.26 of its potential returns per unit of risk. DEERE CO is currently generating about -0.04 per unit of risk. If you would invest 5,016 in Cisco Systems on August 30, 2024 and sell it today you would earn a total of 913.00 from holding Cisco Systems or generate 18.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 85.94% |
| Values | Daily Returns |
Cisco Systems vs. DEERE CO
Performance |
| Timeline |
| Cisco Systems |
| DEERE CO |
Cisco Systems and DEERE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cisco Systems and DEERE
The main advantage of trading using opposite Cisco Systems and DEERE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cisco Systems position performs unexpectedly, DEERE 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 DEERE will offset losses from the drop in DEERE's long position.| Cisco Systems vs. Juniper Networks | Cisco Systems vs. Nokia Corp ADR | Cisco Systems vs. Motorola Solutions | Cisco Systems vs. Ciena Corp |
| DEERE vs. Old Republic International | DEERE vs. Vita Coco | DEERE vs. Thai Beverage PCL | DEERE vs. Compania Cervecerias Unidas |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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