Correlation Between Cisco Systems and EXPEDIA
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By analyzing existing cross correlation between Cisco Systems and EXPEDIA INC, you can compare the effects of market volatilities on Cisco Systems and EXPEDIA 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 EXPEDIA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cisco Systems and EXPEDIA.
Diversification Opportunities for Cisco Systems and EXPEDIA
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cisco and EXPEDIA is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Cisco Systems and EXPEDIA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EXPEDIA INC 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 EXPEDIA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EXPEDIA INC has no effect on the direction of Cisco Systems i.e., Cisco Systems and EXPEDIA go up and down completely randomly.
Pair Corralation between Cisco Systems and EXPEDIA
Given the investment horizon of 90 days Cisco Systems is expected to generate 3.71 times more return on investment than EXPEDIA. However, Cisco Systems is 3.71 times more volatile than EXPEDIA INC. It trades about 0.17 of its potential returns per unit of risk. EXPEDIA INC is currently generating about 0.04 per unit of risk. If you would invest 4,538 in Cisco Systems on August 28, 2024 and sell it today you would earn a total of 1,336 from holding Cisco Systems or generate 29.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.2% |
| Values | Daily Returns |
Cisco Systems vs. EXPEDIA INC
Performance |
| Timeline |
| Cisco Systems |
| EXPEDIA INC |
Cisco Systems and EXPEDIA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cisco Systems and EXPEDIA
The main advantage of trading using opposite Cisco Systems and EXPEDIA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cisco Systems position performs unexpectedly, EXPEDIA 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 EXPEDIA will offset losses from the drop in EXPEDIA's long position.| Cisco Systems vs. Ichor Holdings | Cisco Systems vs. Fabrinet | Cisco Systems vs. Hello Group | Cisco Systems vs. Ultra Clean Holdings |
| EXPEDIA vs. The Coca Cola | EXPEDIA vs. JPMorgan Chase Co | EXPEDIA vs. Dupont De Nemours | EXPEDIA 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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