Correlation Between Cisco Systems and ONEOK
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By analyzing existing cross correlation between Cisco Systems and ONEOK INC NEW, you can compare the effects of market volatilities on Cisco Systems and ONEOK 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 ONEOK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cisco Systems and ONEOK.
Diversification Opportunities for Cisco Systems and ONEOK
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cisco and ONEOK is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Cisco Systems and ONEOK INC NEW in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ONEOK INC NEW 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 ONEOK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ONEOK INC NEW has no effect on the direction of Cisco Systems i.e., Cisco Systems and ONEOK go up and down completely randomly.
Pair Corralation between Cisco Systems and ONEOK
Given the investment horizon of 90 days Cisco Systems is expected to generate 0.47 times more return on investment than ONEOK. However, Cisco Systems is 2.13 times less risky than ONEOK. It trades about 0.26 of its potential returns per unit of risk. ONEOK INC NEW is currently generating about -0.19 per unit of risk. If you would invest 5,568 in Cisco Systems on August 30, 2024 and sell it today you would earn a total of 361.00 from holding Cisco Systems or generate 6.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 81.82% |
| Values | Daily Returns |
Cisco Systems vs. ONEOK INC NEW
Performance |
| Timeline |
| Cisco Systems |
| ONEOK INC NEW |
Cisco Systems and ONEOK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cisco Systems and ONEOK
The main advantage of trading using opposite Cisco Systems and ONEOK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cisco Systems position performs unexpectedly, ONEOK 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 ONEOK will offset losses from the drop in ONEOK's long position.| Cisco Systems vs. NETGEAR | Cisco Systems vs. Clearfield | Cisco Systems vs. ABIVAX Socit Anonyme | Cisco Systems vs. Morningstar Unconstrained Allocation |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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