Correlation Between Ceragon Networks and Wintao Communications
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By analyzing existing cross correlation between Ceragon Networks and Wintao Communications Co, you can compare the effects of market volatilities on Ceragon Networks and Wintao Communications 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 Wintao Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ceragon Networks and Wintao Communications.
Diversification Opportunities for Ceragon Networks and Wintao Communications
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ceragon and Wintao is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Ceragon Networks and Wintao Communications Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wintao Communications 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 Wintao Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wintao Communications has no effect on the direction of Ceragon Networks i.e., Ceragon Networks and Wintao Communications go up and down completely randomly.
Pair Corralation between Ceragon Networks and Wintao Communications
Given the investment horizon of 90 days Ceragon Networks is expected to generate 0.78 times more return on investment than Wintao Communications. However, Ceragon Networks is 1.29 times less risky than Wintao Communications. It trades about 0.07 of its potential returns per unit of risk. Wintao Communications Co is currently generating about 0.02 per unit of risk. If you would invest 193.00 in Ceragon Networks on September 12, 2024 and sell it today you would earn a total of 257.00 from holding Ceragon Networks or generate 133.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 96.16% |
| Values | Daily Returns |
Ceragon Networks vs. Wintao Communications Co
Performance |
| Timeline |
| Ceragon Networks |
| Wintao Communications |
Ceragon Networks and Wintao Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ceragon Networks and Wintao Communications
The main advantage of trading using opposite Ceragon Networks and Wintao Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ceragon Networks position performs unexpectedly, Wintao Communications 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 Wintao Communications will offset losses from the drop in Wintao Communications' long position.| Ceragon Networks vs. Cambium Networks Corp | Ceragon Networks vs. KVH Industries | Ceragon Networks vs. Knowles Cor | Ceragon Networks vs. AudioCodes |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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