Correlation Between Cisco Systems and KraneShares
Can any of the company-specific risk be diversified away by investing in both Cisco Systems and KraneShares 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 Cisco Systems and KraneShares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cisco Systems and KraneShares, you can compare the effects of market volatilities on Cisco Systems and KraneShares 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 KraneShares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cisco Systems and KraneShares.
Diversification Opportunities for Cisco Systems and KraneShares
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cisco and KraneShares is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Cisco Systems and KraneShares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KraneShares 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 KraneShares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KraneShares has no effect on the direction of Cisco Systems i.e., Cisco Systems and KraneShares go up and down completely randomly.
Pair Corralation between Cisco Systems and KraneShares
If you would invest 4,792 in Cisco Systems on December 8, 2024 and sell it today you would earn a total of 1,602 from holding Cisco Systems or generate 33.43% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Cisco Systems vs. KraneShares
Performance |
Timeline |
Cisco Systems |
KraneShares |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Cisco Systems and KraneShares Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Cisco Systems and KraneShares
The main advantage of trading using opposite Cisco Systems and KraneShares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cisco Systems position performs unexpectedly, KraneShares 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 KraneShares will offset losses from the drop in KraneShares' long position.Cisco Systems vs. Juniper Networks | Cisco Systems vs. Nokia Corp ADR | Cisco Systems vs. Motorola Solutions | Cisco Systems vs. Ciena 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
Commodity Directory Find actively traded commodities issued by global exchanges | |
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |