Correlation Between Ceragon Networks and Desjardins Melodia
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By analyzing existing cross correlation between Ceragon Networks and Desjardins Melodia Balanced, you can compare the effects of market volatilities on Ceragon Networks and Desjardins Melodia 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 Desjardins Melodia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ceragon Networks and Desjardins Melodia.
Diversification Opportunities for Ceragon Networks and Desjardins Melodia
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ceragon and Desjardins is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Ceragon Networks and Desjardins Melodia Balanced in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Desjardins Melodia 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 Desjardins Melodia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Desjardins Melodia has no effect on the direction of Ceragon Networks i.e., Ceragon Networks and Desjardins Melodia go up and down completely randomly.
Pair Corralation between Ceragon Networks and Desjardins Melodia
Given the investment horizon of 90 days Ceragon Networks is expected to generate 8.01 times more return on investment than Desjardins Melodia. However, Ceragon Networks is 8.01 times more volatile than Desjardins Melodia Balanced. It trades about 0.1 of its potential returns per unit of risk. Desjardins Melodia Balanced is currently generating about 0.18 per unit of risk. If you would invest 185.00 in Ceragon Networks on September 4, 2024 and sell it today you would earn a total of 231.00 from holding Ceragon Networks or generate 124.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.66% |
| Values | Daily Returns |
Ceragon Networks vs. Desjardins Melodia Balanced
Performance |
| Timeline |
| Ceragon Networks |
| Desjardins Melodia |
Ceragon Networks and Desjardins Melodia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ceragon Networks and Desjardins Melodia
The main advantage of trading using opposite Ceragon Networks and Desjardins Melodia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ceragon Networks position performs unexpectedly, Desjardins Melodia 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 Desjardins Melodia will offset losses from the drop in Desjardins Melodia's long position.| Ceragon Networks vs. Cambium Networks Corp | Ceragon Networks vs. KVH Industries | Ceragon Networks vs. Knowles Cor | Ceragon Networks vs. AudioCodes |
| Desjardins Melodia vs. RBC Select Balanced | Desjardins Melodia vs. TD Comfort Balanced | Desjardins Melodia vs. Mawer Balanced |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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