Correlation Between Cisco Systems and PROCTER
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By analyzing existing cross correlation between Cisco Systems and PROCTER GAMBLE 285, you can compare the effects of market volatilities on Cisco Systems and PROCTER 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 PROCTER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cisco Systems and PROCTER.
Diversification Opportunities for Cisco Systems and PROCTER
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cisco and PROCTER is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Cisco Systems and PROCTER GAMBLE 285 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PROCTER GAMBLE 285 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 PROCTER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PROCTER GAMBLE 285 has no effect on the direction of Cisco Systems i.e., Cisco Systems and PROCTER go up and down completely randomly.
Pair Corralation between Cisco Systems and PROCTER
Given the investment horizon of 90 days Cisco Systems is expected to generate 3.1 times more return on investment than PROCTER. However, Cisco Systems is 3.1 times more volatile than PROCTER GAMBLE 285. It trades about 0.17 of its potential returns per unit of risk. PROCTER GAMBLE 285 is currently generating about 0.07 per unit of risk. If you would invest 4,590 in Cisco Systems on August 30, 2024 and sell it today you would earn a total of 1,339 from holding Cisco Systems or generate 29.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 97.62% |
| Values | Daily Returns |
Cisco Systems vs. PROCTER GAMBLE 285
Performance |
| Timeline |
| Cisco Systems |
| PROCTER GAMBLE 285 |
Cisco Systems and PROCTER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cisco Systems and PROCTER
The main advantage of trading using opposite Cisco Systems and PROCTER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cisco Systems position performs unexpectedly, PROCTER 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 PROCTER will offset losses from the drop in PROCTER's long position.| Cisco Systems vs. Juniper Networks | Cisco Systems vs. Nokia Corp ADR | Cisco Systems vs. Motorola Solutions | Cisco Systems vs. Ciena Corp |
| PROCTER vs. East Africa Metals | PROCTER vs. Griffon | PROCTER vs. WEC Energy Group | PROCTER vs. Black Hills |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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