Correlation Between Cisco Systems and Anfield Equity

Can any of the company-specific risk be diversified away by investing in both Cisco Systems and Anfield Equity 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 Anfield Equity into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Cisco Systems and Anfield Equity Sector, you can compare the effects of market volatilities on Cisco Systems and Anfield Equity 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 Anfield Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cisco Systems and Anfield Equity.

Diversification Opportunities for Cisco Systems and Anfield Equity

0.59

Correlation Coefficient

Cisco Systems  Anfield Equity

Very weak diversification

The 3 months correlation between Cisco and Anfield is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Cisco Systems and Anfield Equity Sector in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anfield Equity Sector 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 Anfield Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anfield Equity Sector has no effect on the direction of Cisco Systems i.e., Cisco Systems and Anfield Equity go up and down completely randomly.

Pair Corralation between Cisco Systems and Anfield Equity

Given the investment horizon of 90 days Cisco Systems is expected to generate 1.37 times less return on investment than Anfield Equity. In addition to that, Cisco Systems is 1.61 times more volatile than Anfield Equity Sector. It trades about 0.09 of its total potential returns per unit of risk. Anfield Equity Sector is currently generating about 0.21 per unit of volatility. If you would invest  1,788  in Anfield Equity Sector on May 28, 2025 and sell it today you would earn a total of  181.00  from holding Anfield Equity Sector or generate 10.12% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Cisco Systems  vs.  Anfield Equity Sector

Cisco Systems

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Cisco Systems are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of very fragile fundamental indicators, Cisco Systems may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Anfield Equity Sector

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Anfield Equity Sector are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Anfield Equity may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Cisco Systems and Anfield Equity

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

The idea behind Cisco Systems and Anfield Equity Sector 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.

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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 Commodity Directory module to find actively traded commodities issued by global exchanges.