Correlation Between Ceragon Networks and Absa Multi
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By analyzing existing cross correlation between Ceragon Networks and Absa Multi Managed, you can compare the effects of market volatilities on Ceragon Networks and Absa Multi 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 Absa Multi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ceragon Networks and Absa Multi.
Diversification Opportunities for Ceragon Networks and Absa Multi
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ceragon and Absa is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Ceragon Networks and Absa Multi Managed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Absa Multi Managed 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 Absa Multi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Absa Multi Managed has no effect on the direction of Ceragon Networks i.e., Ceragon Networks and Absa Multi go up and down completely randomly.
Pair Corralation between Ceragon Networks and Absa Multi
Given the investment horizon of 90 days Ceragon Networks is expected to generate 6.72 times more return on investment than Absa Multi. However, Ceragon Networks is 6.72 times more volatile than Absa Multi Managed. It trades about 0.07 of its potential returns per unit of risk. Absa Multi Managed is currently generating about 0.09 per unit of risk. If you would invest 192.00 in Ceragon Networks on September 5, 2024 and sell it today you would earn a total of 247.00 from holding Ceragon Networks or generate 128.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.59% |
| Values | Daily Returns |
Ceragon Networks vs. Absa Multi Managed
Performance |
| Timeline |
| Ceragon Networks |
| Absa Multi Managed |
Ceragon Networks and Absa Multi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ceragon Networks and Absa Multi
The main advantage of trading using opposite Ceragon Networks and Absa Multi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ceragon Networks position performs unexpectedly, Absa Multi 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 Absa Multi will offset losses from the drop in Absa Multi's long position.| Ceragon Networks vs. Cambium Networks Corp | Ceragon Networks vs. KVH Industries | Ceragon Networks vs. Knowles Cor | Ceragon Networks vs. AudioCodes |
| Absa Multi vs. Sasol Ltd Bee | Absa Multi vs. Centaur Bci Balanced | Absa Multi vs. Sabvest Capital | Absa Multi vs. Growthpoint Properties |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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