Correlation Between Cambium Networks and Silicom
Can any of the company-specific risk be diversified away by investing in both Cambium Networks and Silicom 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 Cambium Networks and Silicom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cambium Networks Corp and Silicom, you can compare the effects of market volatilities on Cambium Networks and Silicom 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 Cambium Networks with a short position of Silicom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cambium Networks and Silicom.
Diversification Opportunities for Cambium Networks and Silicom
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cambium and Silicom is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Cambium Networks Corp and Silicom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silicom and Cambium Networks 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 Cambium Networks Corp are associated (or correlated) with Silicom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silicom has no effect on the direction of Cambium Networks i.e., Cambium Networks and Silicom go up and down completely randomly.
Pair Corralation between Cambium Networks and Silicom
Given the investment horizon of 90 days Cambium Networks Corp is expected to under-perform the Silicom. In addition to that, Cambium Networks is 1.61 times more volatile than Silicom. It trades about -0.1 of its total potential returns per unit of risk. Silicom is currently generating about -0.06 per unit of volatility. If you would invest 4,445 in Silicom on August 28, 2024 and sell it today you would lose (2,949) from holding Silicom or give up 66.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cambium Networks Corp vs. Silicom
Performance |
| Timeline |
| Cambium Networks Corp |
| Silicom |
Cambium Networks and Silicom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cambium Networks and Silicom
The main advantage of trading using opposite Cambium Networks and Silicom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cambium Networks position performs unexpectedly, Silicom 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 Silicom will offset losses from the drop in Silicom's long position.| Cambium Networks vs. Aviat Networks | Cambium Networks vs. Rimini Street | Cambium Networks vs. Airgain | Cambium Networks vs. Calix Inc |
| Silicom vs. Ituran Location and | Silicom vs. Sapiens International | Silicom vs. Allot Communications | Silicom vs. Radcom |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| 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 | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |