Correlation Between Cisco Systems and SASOL
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By analyzing existing cross correlation between Cisco Systems and SASOL FING USA, you can compare the effects of market volatilities on Cisco Systems and SASOL 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 SASOL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cisco Systems and SASOL.
Diversification Opportunities for Cisco Systems and SASOL
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cisco and SASOL is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Cisco Systems and SASOL FING USA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SASOL FING USA 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 SASOL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SASOL FING USA has no effect on the direction of Cisco Systems i.e., Cisco Systems and SASOL go up and down completely randomly.
Pair Corralation between Cisco Systems and SASOL
Given the investment horizon of 90 days Cisco Systems is expected to generate 0.61 times more return on investment than SASOL. However, Cisco Systems is 1.64 times less risky than SASOL. It trades about 0.36 of its potential returns per unit of risk. SASOL FING USA is currently generating about -0.1 per unit of risk. If you would invest 5,477 in Cisco Systems on September 1, 2024 and sell it today you would earn a total of 444.00 from holding Cisco Systems or generate 8.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cisco Systems vs. SASOL FING USA
Performance |
| Timeline |
| Cisco Systems |
| SASOL FING USA |
Cisco Systems and SASOL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cisco Systems and SASOL
The main advantage of trading using opposite Cisco Systems and SASOL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cisco Systems position performs unexpectedly, SASOL 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 SASOL will offset losses from the drop in SASOL's long position.| Cisco Systems vs. Comtech Telecommunications Corp | Cisco Systems vs. KVH Industries | Cisco Systems vs. Silicom | Cisco Systems vs. Knowles Cor |
| SASOL vs. Townsquare Media | SASOL vs. Magnite | SASOL vs. Western Sierra Mining | SASOL vs. Zijin Mining Group |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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