Correlation Between Cisco Systems and LOWES
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By analyzing existing cross correlation between Cisco Systems and LOWES INC 25, you can compare the effects of market volatilities on Cisco Systems and LOWES 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 LOWES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cisco Systems and LOWES.
Diversification Opportunities for Cisco Systems and LOWES
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cisco and LOWES is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Cisco Systems and LOWES INC 25 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LOWES INC 25 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 LOWES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LOWES INC 25 has no effect on the direction of Cisco Systems i.e., Cisco Systems and LOWES go up and down completely randomly.
Pair Corralation between Cisco Systems and LOWES
Given the investment horizon of 90 days Cisco Systems is expected to generate 1.81 times more return on investment than LOWES. However, Cisco Systems is 1.81 times more volatile than LOWES INC 25. It trades about 0.28 of its potential returns per unit of risk. LOWES INC 25 is currently generating about -0.1 per unit of risk. If you would invest 4,923 in Cisco Systems on September 12, 2024 and sell it today you would earn a total of 949.00 from holding Cisco Systems or generate 19.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.41% |
| Values | Daily Returns |
Cisco Systems vs. LOWES INC 25
Performance |
| Timeline |
| Cisco Systems |
| LOWES INC 25 |
Cisco Systems and LOWES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cisco Systems and LOWES
The main advantage of trading using opposite Cisco Systems and LOWES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cisco Systems position performs unexpectedly, LOWES 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 LOWES will offset losses from the drop in LOWES's long position.| Cisco Systems vs. Victory Integrity Smallmid Cap | Cisco Systems vs. Hilton Worldwide Holdings | Cisco Systems vs. NVIDIA | Cisco Systems vs. JPMorgan Chase Co |
| LOWES vs. Tyson Foods | LOWES vs. Sphere Entertainment Co | LOWES vs. BCE Inc | LOWES vs. Cementos Pacasmayo SAA |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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