Correlation Between Cisco Systems and CuriosityStream
Can any of the company-specific risk be diversified away by investing in both Cisco Systems and CuriosityStream 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 CuriosityStream into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cisco Systems and CuriosityStream, you can compare the effects of market volatilities on Cisco Systems and CuriosityStream 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 CuriosityStream. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cisco Systems and CuriosityStream.
Diversification Opportunities for Cisco Systems and CuriosityStream
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cisco and CuriosityStream is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Cisco Systems and CuriosityStream in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CuriosityStream 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 CuriosityStream. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CuriosityStream has no effect on the direction of Cisco Systems i.e., Cisco Systems and CuriosityStream go up and down completely randomly.
Pair Corralation between Cisco Systems and CuriosityStream
Given the investment horizon of 90 days Cisco Systems is expected to generate 58.02 times less return on investment than CuriosityStream. But when comparing it to its historical volatility, Cisco Systems is 61.73 times less risky than CuriosityStream. It trades about 0.18 of its potential returns per unit of risk. CuriosityStream is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 2.20 in CuriosityStream on September 26, 2025 and sell it today you would lose (0.95) from holding CuriosityStream or give up 43.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 22.22% |
| Values | Daily Returns |
Cisco Systems vs. CuriosityStream
Performance |
| Timeline |
| Cisco Systems |
| CuriosityStream |
Risk-Adjusted Performance
Good
Weak | Strong |
Cisco Systems and CuriosityStream Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cisco Systems and CuriosityStream
The main advantage of trading using opposite Cisco Systems and CuriosityStream positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cisco Systems position performs unexpectedly, CuriosityStream 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 CuriosityStream will offset losses from the drop in CuriosityStream's long position.| Cisco Systems vs. International Business Machines | Cisco Systems vs. SAP SE ADR | Cisco Systems vs. Micron Technology | Cisco Systems vs. Salesforce |
| CuriosityStream vs. Mediaco Holding | CuriosityStream vs. Curiositystream | CuriosityStream vs. Gray Television | CuriosityStream vs. Fubotv Inc |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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