Correlation Between Cisco Systems and SENMED
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By analyzing existing cross correlation between Cisco Systems and SENMED 2927 01 NOV 51, you can compare the effects of market volatilities on Cisco Systems and SENMED 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 SENMED. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cisco Systems and SENMED.
Diversification Opportunities for Cisco Systems and SENMED
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Cisco and SENMED is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Cisco Systems and SENMED 2927 01 NOV 51 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SENMED 2927 01 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 SENMED. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SENMED 2927 01 has no effect on the direction of Cisco Systems i.e., Cisco Systems and SENMED go up and down completely randomly.
Pair Corralation between Cisco Systems and SENMED
Given the investment horizon of 90 days Cisco Systems is expected to generate 0.71 times more return on investment than SENMED. However, Cisco Systems is 1.4 times less risky than SENMED. It trades about 0.3 of its potential returns per unit of risk. SENMED 2927 01 NOV 51 is currently generating about 0.03 per unit of risk. If you would invest 5,550 in Cisco Systems on September 2, 2024 and sell it today you would earn a total of 371.00 from holding Cisco Systems or generate 6.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 23.81% |
| Values | Daily Returns |
Cisco Systems vs. SENMED 2927 01 NOV 51
Performance |
| Timeline |
| Cisco Systems |
| SENMED 2927 01 |
Cisco Systems and SENMED Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cisco Systems and SENMED
The main advantage of trading using opposite Cisco Systems and SENMED positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cisco Systems position performs unexpectedly, SENMED 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 SENMED will offset losses from the drop in SENMED's long position.| Cisco Systems vs. Juniper Networks | Cisco Systems vs. Nokia Corp ADR | Cisco Systems vs. Motorola Solutions | Cisco Systems vs. Ciena Corp |
| SENMED vs. Diageo PLC ADR | SENMED vs. China Tontine Wines | SENMED vs. GameStop Corp | SENMED vs. Centessa Pharmaceuticals PLC |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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