Correlation Between Ciena Corp and Cambium Networks
Can any of the company-specific risk be diversified away by investing in both Ciena Corp and Cambium 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 Ciena Corp and Cambium Networks into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ciena Corp and Cambium Networks Corp, you can compare the effects of market volatilities on Ciena Corp and Cambium 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 Ciena Corp with a short position of Cambium Networks. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ciena Corp and Cambium Networks.
Diversification Opportunities for Ciena Corp and Cambium Networks
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ciena and Cambium is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Ciena Corp and Cambium Networks Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cambium Networks Corp 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 Cambium Networks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cambium Networks Corp has no effect on the direction of Ciena Corp i.e., Ciena Corp and Cambium Networks go up and down completely randomly.
Pair Corralation between Ciena Corp and Cambium Networks
Given the investment horizon of 90 days Ciena Corp is expected to generate 2.35 times less return on investment than Cambium Networks. But when comparing it to its historical volatility, Ciena Corp is 1.09 times less risky than Cambium Networks. It trades about 0.14 of its potential returns per unit of risk. Cambium Networks Corp is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 100.00 in Cambium Networks Corp on November 9, 2024 and sell it today you would earn a total of 40.00 from holding Cambium Networks Corp or generate 40.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ciena Corp vs. Cambium Networks Corp
Performance |
| Timeline |
| Ciena Corp |
| Cambium Networks Corp |
Ciena Corp and Cambium Networks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ciena Corp and Cambium Networks
The main advantage of trading using opposite Ciena Corp and Cambium Networks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ciena Corp position performs unexpectedly, Cambium 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 Cambium Networks will offset losses from the drop in Cambium Networks' long position.| Ciena Corp vs. Telesat Corp | Ciena Corp vs. Comtech Telecommunications Corp | Ciena Corp vs. Knowles Cor | Ciena Corp vs. Ituran Location and |
| Cambium Networks vs. Aviat Networks | Cambium Networks vs. Rimini Street | Cambium Networks vs. Airgain | Cambium Networks vs. Calix 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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |