Correlation Between Cisco Systems and Phreesia

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

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

Diversification Opportunities for Cisco Systems and Phreesia

-0.57

Correlation Coefficient

Cisco Systems  Phreesia

Excellent diversification

The 3 months correlation between Cisco and Phreesia is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Cisco Systems and Phreesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phreesia 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 Phreesia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Phreesia has no effect on the direction of Cisco Systems i.e., Cisco Systems and Phreesia go up and down completely randomly.

Pair Corralation between Cisco Systems and Phreesia

Given the investment horizon of 90 days Cisco Systems is expected to generate 0.51 times more return on investment than Phreesia. However, Cisco Systems is 1.94 times less risky than Phreesia. It trades about 0.14 of its potential returns per unit of risk. Phreesia is currently generating about -0.25 per unit of risk. If you would invest  6,803  in Cisco Systems on August 27, 2025 and sell it today you would earn a total of  821.00  from holding Cisco Systems or generate 12.07% return on investment over 90 days.

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

Cisco Systems  vs.  Phreesia

Cisco Systems

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Cisco Systems are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of very weak fundamental indicators, Cisco Systems may actually be approaching a critical reversion point that can send shares even higher in December 2025.

Phreesia

Risk-Adjusted Performance

Weakest

Over the last 90 days Phreesia has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's technical indicators remain relatively invariable which may send shares a bit higher in December 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Cisco Systems and Phreesia

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

The idea behind Cisco Systems and Phreesia 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.