Correlation Between Cisco Systems and ALLSTATE
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By analyzing existing cross correlation between Cisco Systems and ALLSTATE P 535, you can compare the effects of market volatilities on Cisco Systems and ALLSTATE 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 ALLSTATE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cisco Systems and ALLSTATE.
Diversification Opportunities for Cisco Systems and ALLSTATE
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cisco and ALLSTATE is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Cisco Systems and ALLSTATE P 535 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALLSTATE P 535 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 ALLSTATE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALLSTATE P 535 has no effect on the direction of Cisco Systems i.e., Cisco Systems and ALLSTATE go up and down completely randomly.
Pair Corralation between Cisco Systems and ALLSTATE
Given the investment horizon of 90 days Cisco Systems is expected to generate 2.63 times more return on investment than ALLSTATE. However, Cisco Systems is 2.63 times more volatile than ALLSTATE P 535. It trades about 0.16 of its potential returns per unit of risk. ALLSTATE P 535 is currently generating about 0.11 per unit of risk. If you would invest 5,877 in Cisco Systems on November 7, 2024 and sell it today you would earn a total of 257.00 from holding Cisco Systems or generate 4.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Cisco Systems vs. ALLSTATE P 535
Performance |
| Timeline |
| Cisco Systems |
| ALLSTATE P 535 |
Cisco Systems and ALLSTATE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cisco Systems and ALLSTATE
The main advantage of trading using opposite Cisco Systems and ALLSTATE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cisco Systems position performs unexpectedly, ALLSTATE 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 ALLSTATE will offset losses from the drop in ALLSTATE's long position.| Cisco Systems vs. Juniper Networks | Cisco Systems vs. Nokia Corp ADR | Cisco Systems vs. Motorola Solutions | Cisco Systems vs. Ciena Corp |
| ALLSTATE vs. AEP TEX INC | ALLSTATE vs. US BANK NATIONAL | ALLSTATE vs. Bayerische Motoren Werke | ALLSTATE vs. Check Point Software |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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