Correlation Between Angel Oak and Cisco Systems
Can any of the company-specific risk be diversified away by investing in both Angel Oak and Cisco Systems 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 Angel Oak and Cisco Systems into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Angel Oak Financial and Cisco Systems, you can compare the effects of market volatilities on Angel Oak and Cisco Systems 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 Angel Oak with a short position of Cisco Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of Angel Oak and Cisco Systems.
Diversification Opportunities for Angel Oak and Cisco Systems
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Angel and Cisco is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Angel Oak Financial and Cisco Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cisco Systems and Angel Oak 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 Angel Oak Financial are associated (or correlated) with Cisco Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cisco Systems has no effect on the direction of Angel Oak i.e., Angel Oak and Cisco Systems go up and down completely randomly.
Pair Corralation between Angel Oak and Cisco Systems
Given the investment horizon of 90 days Angel Oak is expected to generate 8.26 times less return on investment than Cisco Systems. But when comparing it to its historical volatility, Angel Oak Financial is 2.75 times less risky than Cisco Systems. It trades about 0.05 of its potential returns per unit of risk. Cisco Systems is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 6,739 in Cisco Systems on August 30, 2025 and sell it today you would earn a total of 868.00 from holding Cisco Systems or generate 12.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Angel Oak Financial vs. Cisco Systems
Performance |
| Timeline |
| Angel Oak Financial |
| Cisco Systems |
Angel Oak and Cisco Systems Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Angel Oak and Cisco Systems
The main advantage of trading using opposite Angel Oak and Cisco Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Angel Oak position performs unexpectedly, Cisco Systems 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 Cisco Systems will offset losses from the drop in Cisco Systems' long position.| Angel Oak vs. Catalyst Metals Limited | Angel Oak vs. Aerofoam Metals | Angel Oak vs. ICL Israel Chemicals | Angel Oak vs. GCT Semiconductor Holding |
| Cisco Systems vs. Fernhill Beverage | Cisco Systems vs. White Mountains Insurance | Cisco Systems vs. Ping An Insurance | Cisco Systems vs. American Coastal Insurance |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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