Correlation Between Ceragon Networks and Bangkok Expressway
Can any of the company-specific risk be diversified away by investing in both Ceragon Networks and Bangkok Expressway 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 Bangkok Expressway into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ceragon Networks and Bangkok Expressway and, you can compare the effects of market volatilities on Ceragon Networks and Bangkok Expressway 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 Bangkok Expressway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ceragon Networks and Bangkok Expressway.
Diversification Opportunities for Ceragon Networks and Bangkok Expressway
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ceragon and Bangkok is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Ceragon Networks and Bangkok Expressway and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bangkok Expressway and 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 Bangkok Expressway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bangkok Expressway and has no effect on the direction of Ceragon Networks i.e., Ceragon Networks and Bangkok Expressway go up and down completely randomly.
Pair Corralation between Ceragon Networks and Bangkok Expressway
Given the investment horizon of 90 days Ceragon Networks is expected to generate 2.38 times more return on investment than Bangkok Expressway. However, Ceragon Networks is 2.38 times more volatile than Bangkok Expressway and. It trades about 0.11 of its potential returns per unit of risk. Bangkok Expressway and is currently generating about -0.03 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 Against |
| Strength | Significant |
| Accuracy | 96.98% |
| Values | Daily Returns |
Ceragon Networks vs. Bangkok Expressway and
Performance |
| Timeline |
| Ceragon Networks |
| Bangkok Expressway and |
Ceragon Networks and Bangkok Expressway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ceragon Networks and Bangkok Expressway
The main advantage of trading using opposite Ceragon Networks and Bangkok Expressway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ceragon Networks position performs unexpectedly, Bangkok Expressway 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 Bangkok Expressway will offset losses from the drop in Bangkok Expressway's long position.| Ceragon Networks vs. Cambium Networks Corp | Ceragon Networks vs. KVH Industries | Ceragon Networks vs. Knowles Cor | Ceragon Networks vs. AudioCodes |
| Bangkok Expressway vs. CP ALL Public | Bangkok Expressway vs. Airports of Thailand | Bangkok Expressway vs. Central Pattana Public |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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