Cisco Stock Volatility


USD 48.21  0.03  0.06%   

We consider Cisco Systems very steady. Cisco Systems secures Sharpe Ratio (or Efficiency) of 0.0709, which signifies that the company had 0.0709% of return per unit of risk over the last 3 months. Our standpoint towards foreseeing the volatility of a stock is to use all available market data together with stock-specific technical indicators that cannot be diversified away. We have found twenty-seven technical indicators for Cisco Systems, which you can use to evaluate the future volatility of the firm. Please confirm Cisco Systems Risk Adjusted Performance of 0.1374, downside deviation of 1.55, and Mean Deviation of 1.33 to double-check if the risk estimate we provide is consistent with the expected return of 0.13%.
Cisco Systems Stock volatility depicts how high the prices fluctuate around the mean (or its average) price. In other words, it is a statistical measure of the distribution of Cisco daily returns, and it is calculated using variance and standard deviation. We also use Cisco's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Cisco Systems volatility.

90 Days Market Risk

Very steady

Chance of Distress

90 Days Economic Sensitivity

Follows the market closely

ESG Sustainability

While most ESG disclosures are voluntary, Cisco Systems' sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Cisco Systems' managers and investors.
Environment Score
Governance Score
Social Score
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Cisco Systems can benefit from it. Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Cisco Systems at lower prices. For example, an investor can purchase Cisco stock that has halved in price over a short period. This will lower your average cost per share, thereby improving your portfolio's performance when the markets normalize. Similarly, when the prices of Cisco Systems' stock rises, investors can sell out and invest the proceeds in other equities with better opportunities. Investing when markets are volatile with better valuations will accord both investors and companies the opportunity to generate better long-term returns.

Moving together with Cisco Systems

+0.94CDWCDW CorpPairCorr
+0.7CIENCiena Corp Earnings Call TomorrowPairCorr

Cisco Systems Market Sensitivity And Downside Risk

Cisco Systems' beta coefficient measures the volatility of Cisco stock compared to the systematic risk of the entire stock market represented by your selected benchmark. In mathematical terms, beta represents the slope of the line through a regression of data points where each of these points represents Cisco stock's returns against your selected market. In other words, Cisco Systems's beta of 0.96 provides an investor with an approximation of how much risk Cisco Systems stock can potentially add to one of your existing portfolios.
Cisco Systems has relatively low volatility with skewness of 0.29 and kurtosis of 0.7. However, we advise all investors to independently investigate Cisco Systems to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Cisco Systems' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Cisco Systems' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
3 Months Beta |Analyze Cisco Systems Demand Trend
Check current 90 days Cisco Systems correlation with market (NYSE Composite)

Cisco Beta

Cisco standard deviation measures the daily dispersion of prices over your selected time horizon relative to its mean. Typical volatile equity has a high standard deviation, while the deviation of a stable instrument is usually low. As a downside, the standard deviation calculates all uncertainty as risk, even when it is in your favor, such as above-average returns.

Standard Deviation

It is essential to understand the difference between upside risk (as represented by Cisco Systems's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Cisco Systems' daily returns or price. Since the actual investment returns on holding a position in cisco stock tend to have a non-normal distribution, there will be different probabilities for losses than for gains. The likelihood of losses is reflected in the downside risk of an investment in Cisco Systems.

Using Cisco Put Option to Manage Risk

Put options written on Cisco Systems grant holders of the option the right to sell a specified amount of Cisco Systems at a specified price within a specified time frame. The put buyer has a limited loss and, while not fully unlimited gains, as the price of Cisco Stock cannot fall below zero, the put buyer does gain as the price drops. So, one way investors can hedge Cisco Systems' position is by buying a put option against it. The put option used this way is usually referred to as insurance. If an undesired outcome occurs and loss on holding Cisco Systems will be realized, the loss incurred will be offset by the profits made with the option trade.

Cisco Systems' PUT expiring on 2022-12-09

       Cisco Systems Price At Expiration  

Current Cisco Systems Insurance Chain

DeltaGammaOpen IntExpirationCurrent SpreadLast Price
2022-12-09 PUT at $46.0-0.04530.05998052022-12-090.02 - 0.030.03View
2022-12-09 PUT at $46.5-0.0740.0937922022-12-090.04 - 0.050.05View
2022-12-09 PUT at $47.0-0.10840.14044492022-12-090.07 - 0.080.07View
2022-12-09 PUT at $47.5-0.18980.21257092022-12-090.13 - 0.140.16View
2022-12-09 PUT at $48.0-0.30250.2967382022-12-090.22 - 0.250.23View
2022-12-09 PUT at $48.5-0.46320.34847882022-12-090.38 - 0.430.41View
2022-12-09 PUT at $49.0-0.63970.33986122022-12-090.65 - 0.70.9View
2022-12-09 PUT at $49.5-0.80840.26764312022-12-090.98 - 1.051.23View
2022-12-09 PUT at $50.0-0.90470.16124142022-12-091.4 - 1.511.58View
2022-12-09 PUT at $51.0-0.97470.0495552022-12-092.37 - 2.472.6View
2022-12-09 PUT at $53.0-0.92610.049312022-12-094.3 - 4.53.55View
View All Cisco Systems Options

Cisco Systems Stock Volatility Analysis

Volatility refers to the frequency at which Cisco Systems stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Cisco Systems' price changes. Investors will then calculate the volatility of Cisco Systems' stock to predict their future moves. A stock that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A stock with relatively stable price changes has low volatility. A highly volatile stock is riskier, but the risk cuts both ways. Investing in highly volatile security can either be highly successful, or you may experience significant failure. There are two main types of Cisco Systems' volatility:

Historical Volatility

This type of stock volatility measures Cisco Systems' fluctuations based on previous trends. It's commonly used to predict Cisco Systems' future behavior based on its past. However, it cannot conclusively determine the future direction of the stock.

Implied Volatility

This type of volatility provides a positive outlook on future price fluctuations for Cisco Systems' current market price. This means that the stock will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on Cisco Systems' to be redeemed at a future date.
The output start index for this execution was zero with a total number of output elements of sixty-one. Cisco Systems Typical Price indicator is an average of each day price and can be used instead of closing price when creating different Cisco Systems moving average lines.

Cisco Systems Projected Return Density Against Market

Given the investment horizon of 90 days Cisco Systems has a beta of 0.9633 suggesting Cisco Systems market returns are very sensitive to returns on the market. As the market goes up or down, Cisco Systems is expected to follow.
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Cisco Systems or Communications Equipment sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Cisco Systems' price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Cisco stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
The company has an alpha of 0.0863, implying that it can generate a 0.0863 percent excess return over NYSE Composite after adjusting for the inherited market risk (beta).
   Predicted Return Density   
Cisco Systems' volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how cisco stock's price will differ from the mean after some time.To get its calculation, you should first determine the mean price during the specified period then subtract that from each price point.

What Drives a Cisco Systems Price Volatility?

Several factors can influence a Stock's stock volatility:


Specific events can influence volatility within a particular industry. For instance, a significant weather upheaval in a crucial oil-production site may cause oil prices to increase in the oil sector. The direct result will be the rise in the stock price of oil distribution companies. Similarly, any government regulation in a specific industry could negatively influence stock prices due to increased regulations on compliance that may impact the company's future earnings and growth.

Political and Economic environment

When governments make significant decisions regarding trade agreements, policies, and legislation regarding specific industries, they will influence stock prices. Everything from speeches to elections may influence investors, who can directly influence the stock prices in any particular industry. The prevailing economic situation also plays a significant role in stock prices. When the economy is doing well, investors will have a positive reaction and hence, better stock prices and vice versa.

The Company's Performance

Sometimes volatility will only affect an individual company. For example, a revolutionary product launch or strong earnings report may attract many investors to purchase the company. This positive attention will raise the company's stock price. In contrast, product recalls and data breaches may negatively influence a company's stock prices.

Cisco Systems Stock Risk Measures

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Cisco Systems or Communications Equipment sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Cisco Systems' price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Cisco stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision. Given the investment horizon of 90 days the coefficient of variation of Cisco Systems is 1410.49. The daily returns are distributed with a variance of 3.21 and standard deviation of 1.79. The mean deviation of Cisco Systems is currently at 1.34. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 1.5
Alpha over NYSE Composite
Beta against NYSE Composite0.96
Overall volatility
Information ratio 0.0478

Cisco Systems Stock Return Volatility

Cisco Systems historical daily return volatility represents how much of Cisco Systems stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company inherits 1.7907% risk (volatility on return distribution) over the 90 days horizon. By contrast, NYSE Composite accepts 1.5114% volatility on return distribution over the 90 days horizon.
 Performance (%) 

About Cisco Systems Volatility

Volatility is a rate at which the price of Cisco Systems or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Cisco Systems may increase or decrease. In other words, similar to Cisco's beta indicator, it measures the risk of Cisco Systems and helps estimate the fluctuations that may happen in a short period of time. So if prices of Cisco Systems fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility.
Please read more on our technical analysis page.
Last ReportedProjected for 2022
Market Capitalization187.9 B221.7 B

Cisco Systems Investment Opportunity

Cisco Systems has a volatility of 1.79 and is 1.19 times more volatile than NYSE Composite. 15  of all equities and portfolios are less risky than Cisco Systems. Compared to the overall equity markets, volatility of historical daily returns of Cisco Systems is lower than 15 () of all global equities and portfolios over the last 90 days. Use Cisco Systems to enhance the returns of your portfolios. Benchmarks are essential to demonstrate the utility of optimization algorithms. The stock experiences a normal upward fluctuation. Check odds of Cisco Systems to be traded at $50.62 in 90 days.

Very poor diversification

The correlation between Cisco Systems and NYA is 0.82 (i.e., Very poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Cisco Systems and NYA in the same portfolio, assuming nothing else is changed.

Cisco Systems Additional Risk Indicators

The analysis of Cisco Systems' secondary risk indicators is one of the essential steps in making a buy or sell decision. The process involves identifying the amount of risk involved in Cisco Systems' investment and either accepting that risk or mitigating it. Along with some common measures of Cisco Systems stock's risk such as standard deviation, beta, or value at risk, we also provide a set of secondary indicators that can assist in the individual investment decision or help in hedging the risk of your existing portfolios.
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential stocks, we recommend comparing similar stocks with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.

Cisco Systems Suggested Diversification Pairs

Pair trading is one of the very effective strategies used by professional day traders and hedge funds capitalizing on short-time and mid-term market inefficiencies. The approach is based on the fact that the ratio of prices of two correlating shares is long-term stable and oscillates around the average value. If the correlation ratio comes outside the common area, you can speculate with a high success rate that the ratio will return to the mean value and collect a profit.
The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against Cisco Systems as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. Cisco Systems' systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, Cisco Systems' unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to Cisco Systems.
Continue to Trending Equities. Note that the Cisco Systems information on this page should be used as a complementary analysis to other Cisco Systems' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.

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Is Cisco Systems' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Cisco Systems. If investors know Cisco will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Cisco Systems listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
Market Capitalization
201.1 B
Quarterly Revenue Growth YOY
Return On Assets
Return On Equity
The market value of Cisco Systems is measured differently than its book value, which is the value of Cisco that is recorded on the company's balance sheet. Investors also form their own opinion of Cisco Systems' value that differs from its market value or its book value, called intrinsic value, which is Cisco Systems' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Cisco Systems' market value can be influenced by many factors that don't directly affect Cisco Systems' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Cisco Systems' value and its price as these two are different measures arrived at by different means. Investors typically determine Cisco Systems value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Cisco Systems' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.