Correlation Between Cisco Systems and VanEck Robotics

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

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

Diversification Opportunities for Cisco Systems and VanEck Robotics

0.91

Correlation Coefficient

Cisco Systems  VanEck Robotics

Almost no diversification

The 3 months correlation between Cisco and VanEck is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Cisco Systems and VanEck Robotics ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VanEck Robotics ETF 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 VanEck Robotics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VanEck Robotics ETF has no effect on the direction of Cisco Systems i.e., Cisco Systems and VanEck Robotics go up and down completely randomly.

Pair Corralation between Cisco Systems and VanEck Robotics

Given the investment horizon of 90 days Cisco Systems is expected to generate 1.02 times less return on investment than VanEck Robotics. In addition to that, Cisco Systems is 1.08 times more volatile than VanEck Robotics ETF. It trades about 0.15 of its total potential returns per unit of risk. VanEck Robotics ETF is currently generating about 0.17 per unit of volatility. If you would invest  4,298  in VanEck Robotics ETF on May 15, 2025 and sell it today you would earn a total of  448.50  from holding VanEck Robotics ETF or generate 10.44% return on investment over 90 days.

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

Cisco Systems  vs.  VanEck Robotics ETF

Cisco Systems

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Cisco Systems are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating fundamental indicators, Cisco Systems may actually be approaching a critical reversion point that can send shares even higher in September 2025.

VanEck Robotics ETF

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in VanEck Robotics ETF are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively conflicting basic indicators, VanEck Robotics may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Cisco Systems and VanEck Robotics

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

The idea behind Cisco Systems and VanEck Robotics ETF 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.