Correlation Between Cisco Systems and FEIHE INTERNATIONAL

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Can any of the company-specific risk be diversified away by investing in both Cisco Systems and FEIHE INTERNATIONAL 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 FEIHE INTERNATIONAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cisco Systems and FEIHE INTERNATIONAL INC, you can compare the effects of market volatilities on Cisco Systems and FEIHE INTERNATIONAL 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 FEIHE INTERNATIONAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cisco Systems and FEIHE INTERNATIONAL.

Diversification Opportunities for Cisco Systems and FEIHE INTERNATIONAL

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Cisco and FEIHE is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Cisco Systems and FEIHE INTERNATIONAL INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FEIHE INTERNATIONAL INC 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 FEIHE INTERNATIONAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FEIHE INTERNATIONAL INC has no effect on the direction of Cisco Systems i.e., Cisco Systems and FEIHE INTERNATIONAL go up and down completely randomly.

Pair Corralation between Cisco Systems and FEIHE INTERNATIONAL

If you would invest  4,270  in Cisco Systems on May 14, 2022 and sell it today you would earn a total of  367.00  from holding Cisco Systems or generate 8.59% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

Cisco Systems  vs.  FEIHE INTERNATIONAL INC

 Performance (%) 
       Timeline  
Cisco Systems 
Cisco Performance
0 of 100
Over the last 90 days Cisco Systems has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent fundamental indicators, Cisco Systems is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Cisco Price Channel

FEIHE INTERNATIONAL INC 
FEIHE Performance
0 of 100
Over the last 90 days FEIHE INTERNATIONAL INC has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong fundamental indicators, FEIHE INTERNATIONAL is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Cisco Systems and FEIHE INTERNATIONAL Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Cisco Systems and FEIHE INTERNATIONAL

The main advantage of trading using opposite Cisco Systems and FEIHE INTERNATIONAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cisco Systems position performs unexpectedly, FEIHE INTERNATIONAL 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 FEIHE INTERNATIONAL will offset losses from the drop in FEIHE INTERNATIONAL's long position.

Cisco Systems

Pair trading matchups for Cisco Systems

The idea behind Cisco Systems and FEIHE INTERNATIONAL INC pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.

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