Correlation Between Cisco Systems and KROGER
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By analyzing existing cross correlation between Cisco Systems and KROGER 45 percent, you can compare the effects of market volatilities on Cisco Systems and KROGER 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 KROGER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cisco Systems and KROGER.
Diversification Opportunities for Cisco Systems and KROGER
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cisco and KROGER is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Cisco Systems and KROGER 45 percent in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KROGER 45 percent 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 KROGER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KROGER 45 percent has no effect on the direction of Cisco Systems i.e., Cisco Systems and KROGER go up and down completely randomly.
Pair Corralation between Cisco Systems and KROGER
Given the investment horizon of 90 days Cisco Systems is expected to generate 2.09 times more return on investment than KROGER. However, Cisco Systems is 2.09 times more volatile than KROGER 45 percent. It trades about 0.26 of its potential returns per unit of risk. KROGER 45 percent is currently generating about 0.09 per unit of risk. If you would invest 5,528 in Cisco Systems on August 28, 2024 and sell it today you would earn a total of 346.00 from holding Cisco Systems or generate 6.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Cisco Systems vs. KROGER 45 percent
Performance |
| Timeline |
| Cisco Systems |
| KROGER 45 percent |
Cisco Systems and KROGER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cisco Systems and KROGER
The main advantage of trading using opposite Cisco Systems and KROGER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cisco Systems position performs unexpectedly, KROGER 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 KROGER will offset losses from the drop in KROGER's long position.| Cisco Systems vs. Ichor Holdings | Cisco Systems vs. Fabrinet | Cisco Systems vs. Hello Group | Cisco Systems vs. Ultra Clean Holdings |
| KROGER vs. The Coca Cola | KROGER vs. JPMorgan Chase Co | KROGER vs. Dupont De Nemours | KROGER 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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