Correlation Between Cisco Systems and Ziprecruiter

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

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

Diversification Opportunities for Cisco Systems and Ziprecruiter

-0.46

Correlation Coefficient

Cisco Systems  Ziprecruiter

Very good diversification

The 3 months correlation between Cisco and Ziprecruiter is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Cisco Systems and Ziprecruiter in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ziprecruiter 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 Ziprecruiter. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ziprecruiter has no effect on the direction of Cisco Systems i.e., Cisco Systems and Ziprecruiter go up and down completely randomly.

Pair Corralation between Cisco Systems and Ziprecruiter

Given the investment horizon of 90 days Cisco Systems is expected to generate 0.35 times more return on investment than Ziprecruiter. However, Cisco Systems is 2.87 times less risky than Ziprecruiter. It trades about 0.12 of its potential returns per unit of risk. Ziprecruiter is currently generating about -0.01 per unit of risk. If you would invest  6,868  in Cisco Systems on August 29, 2025 and sell it today you would earn a total of  739.00  from holding Cisco Systems or generate 10.76% 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.  Ziprecruiter

Cisco Systems

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Cisco Systems are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of very fragile fundamental indicators, Cisco Systems may actually be approaching a critical reversion point that can send shares even higher in December 2025.

Ziprecruiter

Risk-Adjusted Performance

Weakest

Over the last 90 days Ziprecruiter has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable forward indicators, Ziprecruiter is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Cisco Systems and Ziprecruiter

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

The idea behind Cisco Systems and Ziprecruiter 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 CEOs Directory module to screen CEOs from public companies around the world.