Correlation Between Ciena Corp and Belden
Can any of the company-specific risk be diversified away by investing in both Ciena Corp and Belden 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 Ciena Corp and Belden into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ciena Corp and Belden Inc, you can compare the effects of market volatilities on Ciena Corp and Belden 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 Ciena Corp with a short position of Belden. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ciena Corp and Belden.
Diversification Opportunities for Ciena Corp and Belden
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ciena and Belden is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Ciena Corp and Belden Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Belden Inc and Ciena Corp 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 Ciena Corp are associated (or correlated) with Belden. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Belden Inc has no effect on the direction of Ciena Corp i.e., Ciena Corp and Belden go up and down completely randomly.
Pair Corralation between Ciena Corp and Belden
Given the investment horizon of 90 days Ciena Corp is expected to generate 1.37 times more return on investment than Belden. However, Ciena Corp is 1.37 times more volatile than Belden Inc. It trades about 0.09 of its potential returns per unit of risk. Belden Inc is currently generating about 0.09 per unit of risk. If you would invest 5,058 in Ciena Corp on November 9, 2024 and sell it today you would earn a total of 4,254 from holding Ciena Corp or generate 84.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ciena Corp vs. Belden Inc
Performance |
| Timeline |
| Ciena Corp |
| Belden Inc |
Ciena Corp and Belden Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ciena Corp and Belden
The main advantage of trading using opposite Ciena Corp and Belden positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ciena Corp position performs unexpectedly, Belden 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 Belden will offset losses from the drop in Belden's long position.| Ciena Corp vs. Telesat Corp | Ciena Corp vs. Comtech Telecommunications Corp | Ciena Corp vs. Knowles Cor | Ciena Corp vs. Ituran Location and |
| Belden vs. Clearfield | Belden vs. Comtech Telecommunications Corp | Belden vs. Knowles Cor | Belden vs. Extreme Networks |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |