Correlation Between Cisco Systems and Amplify ETF
Can any of the company-specific risk be diversified away by investing in both Cisco Systems and Amplify ETF 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 Amplify ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cisco Systems and Amplify ETF Trust, you can compare the effects of market volatilities on Cisco Systems and Amplify ETF 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 Amplify ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cisco Systems and Amplify ETF.
Diversification Opportunities for Cisco Systems and Amplify ETF
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Cisco and Amplify is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Cisco Systems and Amplify ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amplify ETF Trust 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 Amplify ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amplify ETF Trust has no effect on the direction of Cisco Systems i.e., Cisco Systems and Amplify ETF go up and down completely randomly.
Pair Corralation between Cisco Systems and Amplify ETF
Given the investment horizon of 90 days Cisco Systems is expected to generate 1.37 times less return on investment than Amplify ETF. But when comparing it to its historical volatility, Cisco Systems is 1.19 times less risky than Amplify ETF. It trades about 0.24 of its potential returns per unit of risk. Amplify ETF Trust is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 5,910 in Amplify ETF Trust on April 6, 2025 and sell it today you would earn a total of 2,398 from holding Amplify ETF Trust or generate 40.58% 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. Amplify ETF Trust
Performance |
| Timeline |
| Cisco Systems |
| Amplify ETF Trust |
Cisco Systems and Amplify ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cisco Systems and Amplify ETF
The main advantage of trading using opposite Cisco Systems and Amplify ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cisco Systems position performs unexpectedly, Amplify ETF 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 Amplify ETF will offset losses from the drop in Amplify ETF's long position.| Cisco Systems vs. Fabrinet | Cisco Systems vs. Kimball Electronics | Cisco Systems vs. Knowles Cor | Cisco Systems vs. Ubiquiti Networks |
| Amplify ETF vs. EMQQ The Emerging | Amplify ETF vs. McCormick Company Incorporated | Amplify ETF vs. KraneShares CSI China |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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