Correlation Between Cisco Systems and Fidelity MSCI

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

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

Diversification Opportunities for Cisco Systems and Fidelity MSCI

-0.07

Correlation Coefficient

Cisco Systems  Fidelity MSCI

Good diversification

The 3 months correlation between Cisco and Fidelity is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Cisco Systems and Fidelity MSCI Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity MSCI Information 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 Fidelity MSCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity MSCI Information has no effect on the direction of Cisco Systems i.e., Cisco Systems and Fidelity MSCI go up and down completely randomly.

Pair Corralation between Cisco Systems and Fidelity MSCI

Given the investment horizon of 90 days Cisco Systems is expected to generate 15.36 times less return on investment than Fidelity MSCI. In addition to that, Cisco Systems is 1.35 times more volatile than Fidelity MSCI Information. It trades about 0.01 of its total potential returns per unit of risk. Fidelity MSCI Information is currently generating about 0.21 per unit of volatility. If you would invest  19,757  in Fidelity MSCI Information on July 2, 2025 and sell it today you would earn a total of  2,460  from holding Fidelity MSCI Information or generate 12.45% return on investment over 90 days.

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

Cisco Systems  vs.  Fidelity MSCI Information

Cisco Systems

Risk-Adjusted Performance

Weakest

Over the last 90 days Cisco Systems has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy fundamental indicators, Cisco Systems is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Fidelity MSCI Information

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Fidelity MSCI Information are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak technical and fundamental indicators, Fidelity MSCI may actually be approaching a critical reversion point that can send shares even higher in October 2025.

Pair Trading with Cisco Systems and Fidelity MSCI

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

The idea behind Cisco Systems and Fidelity MSCI Information 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 the Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .