Correlation Between Cisco Systems and Murphy
Specify exactly 2 symbols:
By analyzing existing cross correlation between Cisco Systems and Murphy Oil Corp, you can compare the effects of market volatilities on Cisco Systems and Murphy 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 Murphy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cisco Systems and Murphy.
Diversification Opportunities for Cisco Systems and Murphy
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cisco and Murphy is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Cisco Systems and Murphy Oil Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Murphy Oil Corp 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 Murphy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Murphy Oil Corp has no effect on the direction of Cisco Systems i.e., Cisco Systems and Murphy go up and down completely randomly.
Pair Corralation between Cisco Systems and Murphy
Given the investment horizon of 90 days Cisco Systems is expected to generate 1.33 times more return on investment than Murphy. However, Cisco Systems is 1.33 times more volatile than Murphy Oil Corp. It trades about 0.27 of its potential returns per unit of risk. Murphy Oil Corp is currently generating about -0.1 per unit of risk. If you would invest 5,559 in Cisco Systems on August 31, 2024 and sell it today you would earn a total of 370.00 from holding Cisco Systems or generate 6.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Cisco Systems vs. Murphy Oil Corp
Performance |
| Timeline |
| Cisco Systems |
| Murphy Oil Corp |
Cisco Systems and Murphy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cisco Systems and Murphy
The main advantage of trading using opposite Cisco Systems and Murphy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cisco Systems position performs unexpectedly, Murphy 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 Murphy will offset losses from the drop in Murphy's long position.| Cisco Systems vs. Juniper Networks | Cisco Systems vs. Nokia Corp ADR | Cisco Systems vs. Motorola Solutions | Cisco Systems vs. Ciena Corp |
| Murphy vs. Rumble Inc | Murphy vs. Sapiens International | Murphy vs. Rackspace Technology | Murphy vs. The Joint Corp |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |