Correlation Between Cisco Systems and FMGAU
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By analyzing existing cross correlation between Cisco Systems and FMGAU 6125 15 APR 32, you can compare the effects of market volatilities on Cisco Systems and FMGAU 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 FMGAU. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cisco Systems and FMGAU.
Diversification Opportunities for Cisco Systems and FMGAU
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cisco and FMGAU is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Cisco Systems and FMGAU 6125 15 APR 32 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FMGAU 6125 15 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 FMGAU. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FMGAU 6125 15 has no effect on the direction of Cisco Systems i.e., Cisco Systems and FMGAU go up and down completely randomly.
Pair Corralation between Cisco Systems and FMGAU
Given the investment horizon of 90 days Cisco Systems is expected to generate 1.58 times more return on investment than FMGAU. However, Cisco Systems is 1.58 times more volatile than FMGAU 6125 15 APR 32. It trades about 0.09 of its potential returns per unit of risk. FMGAU 6125 15 APR 32 is currently generating about -0.03 per unit of risk. If you would invest 4,674 in Cisco Systems on September 2, 2024 and sell it today you would earn a total of 1,247 from holding Cisco Systems or generate 26.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.16% |
| Values | Daily Returns |
Cisco Systems vs. FMGAU 6125 15 APR 32
Performance |
| Timeline |
| Cisco Systems |
| FMGAU 6125 15 |
Cisco Systems and FMGAU Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cisco Systems and FMGAU
The main advantage of trading using opposite Cisco Systems and FMGAU positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cisco Systems position performs unexpectedly, FMGAU 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 FMGAU will offset losses from the drop in FMGAU's long position.| Cisco Systems vs. Juniper Networks | Cisco Systems vs. Nokia Corp ADR | Cisco Systems vs. Motorola Solutions | Cisco Systems vs. Ciena 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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