Correlation Between Ceragon Networks and DNB Global
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By analyzing existing cross correlation between Ceragon Networks and DNB Global Indeks, you can compare the effects of market volatilities on Ceragon Networks and DNB Global 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 Ceragon Networks with a short position of DNB Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ceragon Networks and DNB Global.
Diversification Opportunities for Ceragon Networks and DNB Global
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ceragon and DNB is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Ceragon Networks and DNB Global Indeks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DNB Global Indeks and Ceragon 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 Ceragon Networks are associated (or correlated) with DNB Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DNB Global Indeks has no effect on the direction of Ceragon Networks i.e., Ceragon Networks and DNB Global go up and down completely randomly.
Pair Corralation between Ceragon Networks and DNB Global
Given the investment horizon of 90 days Ceragon Networks is expected to generate 3.83 times more return on investment than DNB Global. However, Ceragon Networks is 3.83 times more volatile than DNB Global Indeks. It trades about 0.08 of its potential returns per unit of risk. DNB Global Indeks is currently generating about 0.11 per unit of risk. If you would invest 206.00 in Ceragon Networks on September 12, 2024 and sell it today you would earn a total of 244.00 from holding Ceragon Networks or generate 118.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.94% |
| Values | Daily Returns |
Ceragon Networks vs. DNB Global Indeks
Performance |
| Timeline |
| Ceragon Networks |
| DNB Global Indeks |
Ceragon Networks and DNB Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ceragon Networks and DNB Global
The main advantage of trading using opposite Ceragon Networks and DNB Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ceragon Networks position performs unexpectedly, DNB Global 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 DNB Global will offset losses from the drop in DNB Global's long position.| Ceragon Networks vs. Cambium Networks Corp | Ceragon Networks vs. KVH Industries | Ceragon Networks vs. Knowles Cor | Ceragon Networks vs. AudioCodes |
| DNB Global vs. DNB Norge Selektiv | DNB Global vs. KLP AksjeNorge Indeks | DNB Global vs. Storebrand Global Solutions | DNB Global vs. Nordea 1 |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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