Correlation Between Cisco Systems and Graphic
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By analyzing existing cross correlation between Cisco Systems and Graphic Packaging International, you can compare the effects of market volatilities on Cisco Systems and Graphic 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 Graphic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cisco Systems and Graphic.
Diversification Opportunities for Cisco Systems and Graphic
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cisco and Graphic is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Cisco Systems and Graphic Packaging Internationa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Graphic Packaging 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 Graphic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Graphic Packaging has no effect on the direction of Cisco Systems i.e., Cisco Systems and Graphic go up and down completely randomly.
Pair Corralation between Cisco Systems and Graphic
Given the investment horizon of 90 days Cisco Systems is expected to generate 1.75 times more return on investment than Graphic. However, Cisco Systems is 1.75 times more volatile than Graphic Packaging International. It trades about 0.1 of its potential returns per unit of risk. Graphic Packaging International is currently generating about -0.05 per unit of risk. If you would invest 4,778 in Cisco Systems on September 1, 2024 and sell it today you would earn a total of 1,143 from holding Cisco Systems or generate 23.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 77.13% |
| Values | Daily Returns |
Cisco Systems vs. Graphic Packaging Internationa
Performance |
| Timeline |
| Cisco Systems |
| Graphic Packaging |
Cisco Systems and Graphic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cisco Systems and Graphic
The main advantage of trading using opposite Cisco Systems and Graphic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cisco Systems position performs unexpectedly, Graphic 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 Graphic will offset losses from the drop in Graphic's long position.| Cisco Systems vs. Comtech Telecommunications Corp | Cisco Systems vs. KVH Industries | Cisco Systems vs. Silicom | Cisco Systems vs. Knowles Cor |
| Graphic vs. Microbot Medical | Graphic vs. Nyxoah | Graphic vs. Rackspace Technology | Graphic vs. Postal Realty Trust |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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