Correlation Between Cisco Systems and TRANSCANADA
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By analyzing existing cross correlation between Cisco Systems and TRANSCANADA PIPELINES LTD, you can compare the effects of market volatilities on Cisco Systems and TRANSCANADA 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 TRANSCANADA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cisco Systems and TRANSCANADA.
Diversification Opportunities for Cisco Systems and TRANSCANADA
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cisco and TRANSCANADA is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Cisco Systems and TRANSCANADA PIPELINES LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TRANSCANADA PIPELINES LTD 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 TRANSCANADA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TRANSCANADA PIPELINES LTD has no effect on the direction of Cisco Systems i.e., Cisco Systems and TRANSCANADA go up and down completely randomly.
Pair Corralation between Cisco Systems and TRANSCANADA
If you would invest 5,574 in Cisco Systems on August 26, 2024 and sell it today you would earn a total of 281.00 from holding Cisco Systems or generate 5.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Cisco Systems vs. TRANSCANADA PIPELINES LTD
Performance |
| Timeline |
| Cisco Systems |
| TRANSCANADA PIPELINES LTD |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Cisco Systems and TRANSCANADA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cisco Systems and TRANSCANADA
The main advantage of trading using opposite Cisco Systems and TRANSCANADA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cisco Systems position performs unexpectedly, TRANSCANADA 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 TRANSCANADA will offset losses from the drop in TRANSCANADA's long position.| Cisco Systems vs. Ichor Holdings | Cisco Systems vs. Fabrinet | Cisco Systems vs. Hello Group | Cisco Systems vs. Ultra Clean Holdings |
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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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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