Correlation Between Ceragon Networks and AuQ Gold
Can any of the company-specific risk be diversified away by investing in both Ceragon Networks and AuQ Gold at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Ceragon Networks and AuQ Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ceragon Networks and AuQ Gold Mining, you can compare the effects of market volatilities on Ceragon Networks and AuQ Gold 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 AuQ Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ceragon Networks and AuQ Gold.
Diversification Opportunities for Ceragon Networks and AuQ Gold
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ceragon and AuQ is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Ceragon Networks and AuQ Gold Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AuQ Gold Mining 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 AuQ Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AuQ Gold Mining has no effect on the direction of Ceragon Networks i.e., Ceragon Networks and AuQ Gold go up and down completely randomly.
Pair Corralation between Ceragon Networks and AuQ Gold
Given the investment horizon of 90 days Ceragon Networks is expected to generate 2.32 times less return on investment than AuQ Gold. But when comparing it to its historical volatility, Ceragon Networks is 2.9 times less risky than AuQ Gold. It trades about 0.07 of its potential returns per unit of risk. AuQ Gold Mining is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 11.00 in AuQ Gold Mining on September 3, 2024 and sell it today you would earn a total of 11.00 from holding AuQ Gold Mining or generate 100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ceragon Networks vs. AuQ Gold Mining
Performance |
| Timeline |
| Ceragon Networks |
| AuQ Gold Mining |
Ceragon Networks and AuQ Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ceragon Networks and AuQ Gold
The main advantage of trading using opposite Ceragon Networks and AuQ Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ceragon Networks position performs unexpectedly, AuQ Gold 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 AuQ Gold will offset losses from the drop in AuQ Gold's long position.| Ceragon Networks vs. Cambium Networks Corp | Ceragon Networks vs. KVH Industries | Ceragon Networks vs. Knowles Cor | Ceragon Networks vs. AudioCodes |
| AuQ Gold vs. Exco Technologies Limited | AuQ Gold vs. Data Communications Management | AuQ Gold vs. Quorum Information Technologies | AuQ Gold vs. MTY Food Group |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |