Correlation Between Cisco Systems and Janus High

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

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

Diversification Opportunities for Cisco Systems and Janus High

0.97

Correlation Coefficient

Cisco Systems  Janus High

Almost no diversification

The 3 months correlation between Cisco and Janus is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Cisco Systems and Janus High Yield Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Janus High Yield 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 Janus High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Janus High Yield has no effect on the direction of Cisco Systems i.e., Cisco Systems and Janus High go up and down completely randomly.

Pair Corralation between Cisco Systems and Janus High

Given the investment horizon of 90 days Cisco Systems is expected to generate 4.92 times more return on investment than Janus High. However, Cisco Systems is 4.92 times more volatile than Janus High Yield Fund. It trades about 0.24 of its potential returns per unit of risk. Janus High Yield Fund is currently generating about 0.33 per unit of risk. If you would invest  5,777  in Cisco Systems on May 1, 2025 and sell it today you would earn a total of  1,019  from holding Cisco Systems or generate 17.64% 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.  Janus High Yield Fund

Cisco Systems

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Cisco Systems are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating fundamental indicators, Cisco Systems displayed solid returns over the last few months and may actually be approaching a breakup point.

Janus High Yield

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Janus High Yield Fund are ranked lower than 26 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Janus High is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Cisco Systems and Janus High

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

The idea behind Cisco Systems and Janus High Yield Fund 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.