Correlation Between Cisco Systems and NUCOR
Specify exactly 2 symbols:
By analyzing existing cross correlation between Cisco Systems and NUCOR P 395, you can compare the effects of market volatilities on Cisco Systems and NUCOR 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 NUCOR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cisco Systems and NUCOR.
Diversification Opportunities for Cisco Systems and NUCOR
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cisco and NUCOR is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Cisco Systems and NUCOR P 395 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NUCOR P 5 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 NUCOR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NUCOR P 5 has no effect on the direction of Cisco Systems i.e., Cisco Systems and NUCOR go up and down completely randomly.
Pair Corralation between Cisco Systems and NUCOR
Given the investment horizon of 90 days Cisco Systems is expected to generate 4.38 times more return on investment than NUCOR. However, Cisco Systems is 4.38 times more volatile than NUCOR P 395. It trades about 0.27 of its potential returns per unit of risk. NUCOR P 395 is currently generating about -0.05 per unit of risk. If you would invest 5,528 in Cisco Systems on August 27, 2024 and sell it today you would earn a total of 346.00 from holding Cisco Systems or generate 6.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Cisco Systems vs. NUCOR P 395
Performance |
| Timeline |
| Cisco Systems |
| NUCOR P 5 |
Cisco Systems and NUCOR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cisco Systems and NUCOR
The main advantage of trading using opposite Cisco Systems and NUCOR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cisco Systems position performs unexpectedly, NUCOR 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 NUCOR will offset losses from the drop in NUCOR's long position.| Cisco Systems vs. Ichor Holdings | Cisco Systems vs. Fabrinet | Cisco Systems vs. Hello Group | Cisco Systems vs. Ultra Clean Holdings |
| NUCOR vs. Nextplat Corp | NUCOR vs. Zedge Inc | NUCOR vs. Franklin Wireless Corp | NUCOR vs. Bausch Lomb 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |