Cisco Systems Stock Forecast - 4 Period Moving Average
| CSCO Stock | USD 57.56 0.06 0.10% |
The 4 Period Moving Average forecasted value of Cisco Systems on the next trading day is expected to be 57.34 with a mean absolute deviation of 0.73 and the sum of the absolute errors of 41.60. Cisco Stock Forecast is based on your current time horizon. Although Cisco Systems' naive historical forecasting may sometimes provide an important future outlook for the firm, we recommend always cross-verifying it against solid analysis of Cisco Systems' systematic risk associated with finding meaningful patterns of Cisco Systems fundamentals over time.
Cisco |
Open Interest Against 2024-11-22 Cisco Option Contracts
Although open interest is a measure utilized in the options markets, it could be used to forecast Cisco Systems' spot prices because the number of available contracts in the market changes daily, and new contracts can be created or liquidated at will. Since open interest in Cisco Systems' options reflects these daily shifts, investors could use the patterns of these changes to develop long and short-term trading strategies for Cisco Systems stock based on available contracts left at the end of a trading day.
Please note that to derive more accurate forecasting about market movement from the current Cisco Systems' open interest, investors have to compare it to Cisco Systems' spot prices. As Ford's stock price increases, high open interest indicates that money is entering the market, and the market is strongly bullish. Conversely, if the price of Cisco Systems is decreasing and there is high open interest, that is a sign that the bearish trend will continue, and investors may react by taking short positions in Cisco. So, decreasing or low open interest during a bull market indicates that investors are becoming uncertain of the depth of the bullish trend, and a reversal in sentiment will likely follow.
Cisco Systems 4 Period Moving Average Price Forecast For the 22nd of November
Given 90 days horizon, the 4 Period Moving Average forecasted value of Cisco Systems on the next trading day is expected to be 57.34 with a mean absolute deviation of 0.73, mean absolute percentage error of 0.81, and the sum of the absolute errors of 41.60.Please note that although there have been many attempts to predict Cisco Stock prices using its time series forecasting, we generally do not recommend using it to place bets in the real market. The most commonly used models for forecasting predictions are the autoregressive models, which specify that Cisco Systems' next future price depends linearly on its previous prices and some stochastic term (i.e., imperfectly predictable multiplier).
Cisco Systems Stock Forecast Pattern
| Backtest Cisco Systems | Cisco Systems Price Prediction | Buy or Sell Advice |
Cisco Systems Forecasted Value
In the context of forecasting Cisco Systems' Stock value on the next trading day, we examine the predictive performance of the model to find good statistically significant boundaries of downside and upside scenarios. Cisco Systems' downside and upside margins for the forecasting period are 56.30 and 58.39, respectively. We have considered Cisco Systems' daily market price to evaluate the above model's predictive performance. Remember, however, there is no scientific proof or empirical evidence that traditional linear or nonlinear forecasting models outperform artificial intelligence and frequency domain models to provide accurate forecasts consistently.
Model Predictive Factors
The below table displays some essential indicators generated by the model showing the 4 Period Moving Average forecasting method's relative quality and the estimations of the prediction error of Cisco Systems stock data series using in forecasting. Note that when a statistical model is used to represent Cisco Systems stock, the representation will rarely be exact; so some information will be lost using the model to explain the process. AIC estimates the relative amount of information lost by a given model: the less information a model loses, the higher its quality.| AIC | Akaike Information Criteria | 110.5503 |
| Bias | Arithmetic mean of the errors | -0.3306 |
| MAD | Mean absolute deviation | 0.7299 |
| MAPE | Mean absolute percentage error | 0.0135 |
| SAE | Sum of the absolute errors | 41.605 |
Predictive Modules for Cisco Systems
There are currently many different techniques concerning forecasting the market as a whole, as well as predicting future values of individual securities such as Cisco Systems. Regardless of method or technology, however, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Cisco Systems' price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Other Forecasting Options for Cisco Systems
For every potential investor in Cisco, whether a beginner or expert, Cisco Systems' price movement is the inherent factor that sparks whether it is viable to invest in it or hold it better. Cisco Stock price charts are filled with many 'noises.' These noises can hugely alter the decision one can make regarding investing in Cisco. Basic forecasting techniques help filter out the noise by identifying Cisco Systems' price trends.Cisco Systems Related Equities
One of the popular trading techniques among algorithmic traders is to use market-neutral strategies where every trade hedges away some risk. Because there are two separate transactions required, even if one position performs unexpectedly, the other equity can make up some of the losses. Below are some of the equities that can be combined with Cisco Systems stock to make a market-neutral strategy. Peer analysis of Cisco Systems could also be used in its relative valuation, which is a method of valuing Cisco Systems by comparing valuation metrics with similar companies.
| Risk & Return | Correlation |
Cisco Systems Technical and Predictive Analytics
The stock market is financially volatile. Despite the volatility, there exist limitless possibilities of gaining profits and building passive income portfolios. With the complexity of Cisco Systems' price movements, a comprehensive understanding of forecasting methods that an investor can rely on to make the right move is invaluable. These methods predict trends that assist an investor in predicting the movement of Cisco Systems' current price.| Cycle Indicators | ||
| Math Operators | ||
| Math Transform | ||
| Momentum Indicators | ||
| Overlap Studies | ||
| Pattern Recognition | ||
| Price Transform | ||
| Statistic Functions | ||
| Volatility Indicators | ||
| Volume Indicators |
Cisco Systems Market Strength Events
Market strength indicators help investors to evaluate how Cisco Systems stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Cisco Systems shares will generate the highest return on investment. By undertsting and applying Cisco Systems stock market strength indicators, traders can identify Cisco Systems entry and exit signals to maximize returns.
Cisco Systems Risk Indicators
The analysis of Cisco Systems' basic risk indicators is one of the essential steps in accurately forecasting its future price. The process involves identifying the amount of risk involved in Cisco Systems' investment and either accepting that risk or mitigating it. Along with some essential techniques for forecasting cisco stock prices, we also provide a set of basic risk indicators that can assist in the individual investment decision or help in hedging the risk of your existing portfolios.
| Mean Deviation | 0.7353 | |||
| Semi Deviation | 0.6003 | |||
| Standard Deviation | 1.03 | |||
| Variance | 1.07 | |||
| Downside Variance | 0.751 | |||
| Semi Variance | 0.3603 | |||
| Expected Short fall | (0.82) |
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential investments, we recommend comparing similar equities with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.
Pair Trading with Cisco Systems
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Cisco Systems position performs unexpectedly, the other equity 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 appreciate offsetting losses from the drop in the long position's value.Moving together with Cisco Stock
Moving against Cisco Stock
| 0.89 | ENPH | Enphase Energy | PairCorr |
| 0.79 | FRGT | Freight Technologies | PairCorr |
| 0.69 | VRRM | Verra Mobility Corp | PairCorr |
The ability to find closely correlated positions to Cisco Systems could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Cisco Systems when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Cisco Systems - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Cisco Systems to buy it.
The correlation of Cisco Systems is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Cisco Systems moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Cisco Systems moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Cisco Systems can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Check out Historical Fundamental Analysis of Cisco Systems to cross-verify your projections. To learn how to invest in Cisco Stock, please use our How to Invest in Cisco Systems guide.You can also try the Equity Valuation module to check real value of public entities based on technical and fundamental data.
Is Communications Equipment space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Cisco Systems. If investors know Cisco will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Cisco Systems listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.24) | Dividend Share 1.19 | Earnings Share 2.35 | Revenue Per Share 13.158 | Quarterly Revenue Growth (0.06) |
The market value of Cisco Systems is measured differently than its book value, which is the value of Cisco that is recorded on the company's balance sheet. Investors also form their own opinion of Cisco Systems' value that differs from its market value or its book value, called intrinsic value, which is Cisco Systems' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Cisco Systems' market value can be influenced by many factors that don't directly affect Cisco Systems' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Cisco Systems' value and its price as these two are different measures arrived at by different means. Investors typically determine if Cisco Systems is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Cisco Systems' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.