Correlation Between Cisco Systems and GENERAL
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By analyzing existing cross correlation between Cisco Systems and GENERAL DYNAMICS PORATION, you can compare the effects of market volatilities on Cisco Systems and GENERAL 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 GENERAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cisco Systems and GENERAL.
Diversification Opportunities for Cisco Systems and GENERAL
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cisco and GENERAL is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Cisco Systems and GENERAL DYNAMICS PORATION in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GENERAL DYNAMICS 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 GENERAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GENERAL DYNAMICS PORATION has no effect on the direction of Cisco Systems i.e., Cisco Systems and GENERAL go up and down completely randomly.
Pair Corralation between Cisco Systems and GENERAL
Given the investment horizon of 90 days Cisco Systems is expected to generate 1.38 times more return on investment than GENERAL. However, Cisco Systems is 1.38 times more volatile than GENERAL DYNAMICS PORATION. It trades about 0.36 of its potential returns per unit of risk. GENERAL DYNAMICS PORATION is currently generating about -0.2 per unit of risk. If you would invest 5,477 in Cisco Systems on September 1, 2024 and sell it today you would earn a total of 444.00 from holding Cisco Systems or generate 8.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cisco Systems vs. GENERAL DYNAMICS PORATION
Performance |
| Timeline |
| Cisco Systems |
| GENERAL DYNAMICS PORATION |
Cisco Systems and GENERAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cisco Systems and GENERAL
The main advantage of trading using opposite Cisco Systems and GENERAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cisco Systems position performs unexpectedly, GENERAL 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 GENERAL will offset losses from the drop in GENERAL's long position.| Cisco Systems vs. Comtech Telecommunications Corp | Cisco Systems vs. KVH Industries | Cisco Systems vs. Silicom | Cisco Systems vs. Knowles Cor |
| GENERAL vs. Jeld Wen Holding | GENERAL vs. Rumble Inc | GENERAL vs. Getty Images Holdings | GENERAL vs. Griffon |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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