Correlation Between Cisco Systems and Humacyte
Can any of the company-specific risk be diversified away by investing in both Cisco Systems and Humacyte 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 Humacyte into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cisco Systems and Humacyte, you can compare the effects of market volatilities on Cisco Systems and Humacyte 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 Humacyte. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cisco Systems and Humacyte.
Diversification Opportunities for Cisco Systems and Humacyte
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cisco and Humacyte is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Cisco Systems and Humacyte in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Humacyte 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 Humacyte. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Humacyte has no effect on the direction of Cisco Systems i.e., Cisco Systems and Humacyte go up and down completely randomly.
Pair Corralation between Cisco Systems and Humacyte
Given the investment horizon of 90 days Cisco Systems is expected to generate 0.29 times more return on investment than Humacyte. However, Cisco Systems is 3.49 times less risky than Humacyte. It trades about 0.09 of its potential returns per unit of risk. Humacyte is currently generating about -0.08 per unit of risk. If you would invest 6,959 in Cisco Systems on October 9, 2025 and sell it today you would earn a total of 513.00 from holding Cisco Systems or generate 7.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cisco Systems vs. Humacyte
Performance |
| Timeline |
| Cisco Systems |
| Humacyte |
Cisco Systems and Humacyte Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cisco Systems and Humacyte
The main advantage of trading using opposite Cisco Systems and Humacyte positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cisco Systems position performs unexpectedly, Humacyte 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 Humacyte will offset losses from the drop in Humacyte's long position.| Cisco Systems vs. International Business Machines | Cisco Systems vs. SAP SE ADR | Cisco Systems vs. Micron Technology | Cisco Systems vs. Salesforce |
| Humacyte vs. Entrada Therapeutics | Humacyte vs. Arcturus Therapeutics Holdings | Humacyte vs. Achieve Life Sciences | Humacyte vs. Voyager Therapeutics |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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