Correlation Between KEBNI AB and Cisco Systems
Can any of the company-specific risk be diversified away by investing in both KEBNI AB and Cisco Systems at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining KEBNI AB and Cisco Systems into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KEBNI AB SERB and Cisco Systems, you can compare the effects of market volatilities on KEBNI AB and Cisco Systems 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 KEBNI AB with a short position of Cisco Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of KEBNI AB and Cisco Systems.
Diversification Opportunities for KEBNI AB and Cisco Systems
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between KEBNI and Cisco is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding KEBNI AB SERB and Cisco Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cisco Systems and KEBNI AB 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 KEBNI AB SERB are associated (or correlated) with Cisco Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cisco Systems has no effect on the direction of KEBNI AB i.e., KEBNI AB and Cisco Systems go up and down completely randomly.
Pair Corralation between KEBNI AB and Cisco Systems
If you would invest 4,503 in Cisco Systems on September 12, 2024 and sell it today you would earn a total of 1,054 from holding Cisco Systems or generate 23.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
KEBNI AB SERB vs. Cisco Systems
Performance |
| Timeline |
| KEBNI AB SERB |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Cisco Systems |
KEBNI AB and Cisco Systems Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KEBNI AB and Cisco Systems
The main advantage of trading using opposite KEBNI AB and Cisco Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KEBNI AB position performs unexpectedly, Cisco Systems 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 Cisco Systems will offset losses from the drop in Cisco Systems' long position.| KEBNI AB vs. Corsair Gaming | KEBNI AB vs. WIZZ AIR HLDGUNSPADR4 | KEBNI AB vs. Fukuyama Transporting Co | KEBNI AB vs. FORWARD AIR P |
| Cisco Systems vs. Astral Foods Limited | Cisco Systems vs. Moneysupermarket Group PLC | Cisco Systems vs. ECHO INVESTMENT ZY | Cisco Systems vs. Gladstone Investment |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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