Correlation Between Cisco Systems and Occidental
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By analyzing existing cross correlation between Cisco Systems and Occidental Petroleum 8875, you can compare the effects of market volatilities on Cisco Systems and Occidental 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 Occidental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cisco Systems and Occidental.
Diversification Opportunities for Cisco Systems and Occidental
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cisco and Occidental is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Cisco Systems and Occidental Petroleum 8875 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Occidental Petroleum 8875 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 Occidental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Occidental Petroleum 8875 has no effect on the direction of Cisco Systems i.e., Cisco Systems and Occidental go up and down completely randomly.
Pair Corralation between Cisco Systems and Occidental
Given the investment horizon of 90 days Cisco Systems is expected to generate 2.67 times more return on investment than Occidental. However, Cisco Systems is 2.67 times more volatile than Occidental Petroleum 8875. It trades about 0.05 of its potential returns per unit of risk. Occidental Petroleum 8875 is currently generating about 0.01 per unit of risk. If you would invest 4,601 in Cisco Systems on August 31, 2024 and sell it today you would earn a total of 1,328 from holding Cisco Systems or generate 28.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.58% |
| Values | Daily Returns |
Cisco Systems vs. Occidental Petroleum 8875
Performance |
| Timeline |
| Cisco Systems |
| Occidental Petroleum 8875 |
Cisco Systems and Occidental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cisco Systems and Occidental
The main advantage of trading using opposite Cisco Systems and Occidental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cisco Systems position performs unexpectedly, Occidental 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 Occidental will offset losses from the drop in Occidental's long position.| Cisco Systems vs. Juniper Networks | Cisco Systems vs. Nokia Corp ADR | Cisco Systems vs. Motorola Solutions | Cisco Systems vs. Ciena Corp |
| Occidental vs. AEP TEX INC | Occidental vs. US BANK NATIONAL | Occidental vs. Bank of America | Occidental vs. GE Aerospace |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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