Correlation Between Akoustis Technologies and Ceragon Networks
Can any of the company-specific risk be diversified away by investing in both Akoustis Technologies and Ceragon Networks 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 Akoustis Technologies and Ceragon Networks into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Akoustis Technologies and Ceragon Networks, you can compare the effects of market volatilities on Akoustis Technologies and Ceragon Networks 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 Akoustis Technologies with a short position of Ceragon Networks. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akoustis Technologies and Ceragon Networks.
Diversification Opportunities for Akoustis Technologies and Ceragon Networks
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Akoustis and Ceragon is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Akoustis Technologies and Ceragon Networks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ceragon Networks and Akoustis Technologies 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 Akoustis Technologies are associated (or correlated) with Ceragon Networks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ceragon Networks has no effect on the direction of Akoustis Technologies i.e., Akoustis Technologies and Ceragon Networks go up and down completely randomly.
Pair Corralation between Akoustis Technologies and Ceragon Networks
Given the investment horizon of 90 days Akoustis Technologies is expected to under-perform the Ceragon Networks. In addition to that, Akoustis Technologies is 3.32 times more volatile than Ceragon Networks. It trades about -0.04 of its total potential returns per unit of risk. Ceragon Networks is currently generating about 0.07 per unit of volatility. If you would invest 197.00 in Ceragon Networks on August 28, 2024 and sell it today you would earn a total of 209.00 from holding Ceragon Networks or generate 106.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Akoustis Technologies vs. Ceragon Networks
Performance |
| Timeline |
| Akoustis Technologies |
| Ceragon Networks |
Akoustis Technologies and Ceragon Networks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Akoustis Technologies and Ceragon Networks
The main advantage of trading using opposite Akoustis Technologies and Ceragon Networks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akoustis Technologies position performs unexpectedly, Ceragon Networks 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 Ceragon Networks will offset losses from the drop in Ceragon Networks' long position.| Akoustis Technologies vs. Aviat Networks | Akoustis Technologies vs. AudioCodes | Akoustis Technologies vs. Silicom | Akoustis Technologies vs. Gilat Satellite Networks |
| Ceragon Networks vs. Cambium Networks Corp | Ceragon Networks vs. KVH Industries | Ceragon Networks vs. Knowles Cor | Ceragon Networks vs. AudioCodes |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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