Correlation Between Cisco Systems and Super Micro
Can any of the company-specific risk be diversified away by investing in both Cisco Systems and Super Micro at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Cisco Systems and Super Micro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cisco Systems and Super Micro Computer, you can compare the effects of market volatilities on Cisco Systems and Super Micro 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 Super Micro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cisco Systems and Super Micro.
Diversification Opportunities for Cisco Systems and Super Micro
-0.88 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cisco and Super is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding Cisco Systems and Super Micro Computer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Super Micro Computer 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 Super Micro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Super Micro Computer has no effect on the direction of Cisco Systems i.e., Cisco Systems and Super Micro go up and down completely randomly.
Pair Corralation between Cisco Systems and Super Micro
Given the investment horizon of 90 days Cisco Systems is expected to generate 0.37 times more return on investment than Super Micro. However, Cisco Systems is 2.72 times less risky than Super Micro. It trades about 0.12 of its potential returns per unit of risk. Super Micro Computer is currently generating about -0.22 per unit of risk. If you would invest 6,862 in Cisco Systems on October 7, 2025 and sell it today you would earn a total of 742.00 from holding Cisco Systems or generate 10.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cisco Systems vs. Super Micro Computer
Performance |
| Timeline |
| Cisco Systems |
| Super Micro Computer |
Cisco Systems and Super Micro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cisco Systems and Super Micro
The main advantage of trading using opposite Cisco Systems and Super Micro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cisco Systems position performs unexpectedly, Super Micro 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 Super Micro will offset losses from the drop in Super Micro's long position.| Cisco Systems vs. International Business Machines | Cisco Systems vs. SAP SE ADR | Cisco Systems vs. Micron Technology | Cisco Systems vs. Salesforce |
| Super Micro vs. Pure Storage | Super Micro vs. HP Inc | Super Micro vs. Hewlett Packard Enterprise | Super Micro vs. NetApp Inc |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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