Correlation Between Ceragon Networks and Hangzhou Gaoxin
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By analyzing existing cross correlation between Ceragon Networks and Hangzhou Gaoxin Rubber, you can compare the effects of market volatilities on Ceragon Networks and Hangzhou Gaoxin 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 Hangzhou Gaoxin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ceragon Networks and Hangzhou Gaoxin.
Diversification Opportunities for Ceragon Networks and Hangzhou Gaoxin
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ceragon and Hangzhou is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Ceragon Networks and Hangzhou Gaoxin Rubber in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Gaoxin Rubber 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 Hangzhou Gaoxin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou Gaoxin Rubber has no effect on the direction of Ceragon Networks i.e., Ceragon Networks and Hangzhou Gaoxin go up and down completely randomly.
Pair Corralation between Ceragon Networks and Hangzhou Gaoxin
Given the investment horizon of 90 days Ceragon Networks is expected to generate 0.79 times more return on investment than Hangzhou Gaoxin. However, Ceragon Networks is 1.26 times less risky than Hangzhou Gaoxin. It trades about 0.11 of its potential returns per unit of risk. Hangzhou Gaoxin Rubber is currently generating about 0.02 per unit of risk. If you would invest 188.00 in Ceragon Networks on September 12, 2024 and sell it today you would earn a total of 301.00 from holding Ceragon Networks or generate 160.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.47% |
| Values | Daily Returns |
Ceragon Networks vs. Hangzhou Gaoxin Rubber
Performance |
| Timeline |
| Ceragon Networks |
| Hangzhou Gaoxin Rubber |
Ceragon Networks and Hangzhou Gaoxin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ceragon Networks and Hangzhou Gaoxin
The main advantage of trading using opposite Ceragon Networks and Hangzhou Gaoxin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ceragon Networks position performs unexpectedly, Hangzhou Gaoxin 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 Hangzhou Gaoxin will offset losses from the drop in Hangzhou Gaoxin's long position.| Ceragon Networks vs. Cambium Networks Corp | Ceragon Networks vs. KVH Industries | Ceragon Networks vs. Knowles Cor | Ceragon Networks vs. AudioCodes |
| Hangzhou Gaoxin vs. Zijin Mining Group | Hangzhou Gaoxin vs. Wanhua Chemical Group | Hangzhou Gaoxin vs. Baoshan Iron Steel | Hangzhou Gaoxin vs. Rongsheng Petrochemical Co |
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 Stocks Directory module to find actively traded stocks across global markets.
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