Correlation Between Cisco Systems and ProShares VIX
Can any of the company-specific risk be diversified away by investing in both Cisco Systems and ProShares VIX 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 ProShares VIX into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cisco Systems and ProShares VIX Short Term, you can compare the effects of market volatilities on Cisco Systems and ProShares VIX 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 ProShares VIX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cisco Systems and ProShares VIX.
Diversification Opportunities for Cisco Systems and ProShares VIX
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cisco and ProShares is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Cisco Systems and ProShares VIX Short Term in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares VIX Short 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 ProShares VIX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares VIX Short has no effect on the direction of Cisco Systems i.e., Cisco Systems and ProShares VIX go up and down completely randomly.
Pair Corralation between Cisco Systems and ProShares VIX
Given the investment horizon of 90 days Cisco Systems is expected to generate 0.33 times more return on investment than ProShares VIX. However, Cisco Systems is 2.99 times less risky than ProShares VIX. It trades about 0.24 of its potential returns per unit of risk. ProShares VIX Short Term is currently generating about -0.2 per unit of risk. If you would invest 5,738 in Cisco Systems on April 30, 2025 and sell it today you would earn a total of 1,054 from holding Cisco Systems or generate 18.37% 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. ProShares VIX Short Term
Performance |
Timeline |
Cisco Systems |
ProShares VIX Short |
Cisco Systems and ProShares VIX Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Cisco Systems and ProShares VIX
The main advantage of trading using opposite Cisco Systems and ProShares VIX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cisco Systems position performs unexpectedly, ProShares VIX 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 ProShares VIX will offset losses from the drop in ProShares VIX's long position.Cisco Systems vs. Ciena Corp | Cisco Systems vs. Hewlett Packard Enterprise | Cisco Systems vs. International Business Machines | Cisco Systems vs. Intel |
ProShares VIX vs. ProShares VIX Mid Term | ProShares VIX vs. ProShares Short VIX | ProShares VIX vs. ProShares Ultra VIX | ProShares VIX vs. iPath Series B |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |