Correlation Between Ceragon Networks and PT Bayan
Can any of the company-specific risk be diversified away by investing in both Ceragon Networks and PT Bayan 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 PT Bayan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ceragon Networks and PT Bayan Resources, you can compare the effects of market volatilities on Ceragon Networks and PT Bayan 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 PT Bayan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ceragon Networks and PT Bayan.
Diversification Opportunities for Ceragon Networks and PT Bayan
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ceragon and BNB is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Ceragon Networks and PT Bayan Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Bayan Resources 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 PT Bayan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Bayan Resources has no effect on the direction of Ceragon Networks i.e., Ceragon Networks and PT Bayan go up and down completely randomly.
Pair Corralation between Ceragon Networks and PT Bayan
Given the investment horizon of 90 days Ceragon Networks is expected to generate 1.34 times more return on investment than PT Bayan. However, Ceragon Networks is 1.34 times more volatile than PT Bayan Resources. It trades about 0.6 of its potential returns per unit of risk. PT Bayan Resources is currently generating about 0.2 per unit of risk. If you would invest 242.00 in Ceragon Networks on September 3, 2024 and sell it today you would earn a total of 212.00 from holding Ceragon Networks or generate 87.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Ceragon Networks vs. PT Bayan Resources
Performance |
| Timeline |
| Ceragon Networks |
| PT Bayan Resources |
Ceragon Networks and PT Bayan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ceragon Networks and PT Bayan
The main advantage of trading using opposite Ceragon Networks and PT Bayan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ceragon Networks position performs unexpectedly, PT Bayan 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 PT Bayan will offset losses from the drop in PT Bayan's long position.| Ceragon Networks vs. Cambium Networks Corp | Ceragon Networks vs. KVH Industries | Ceragon Networks vs. Knowles Cor | Ceragon Networks vs. AudioCodes |
| PT Bayan vs. Charter Communications | PT Bayan vs. Arrow Electronics | PT Bayan vs. Richardson Electronics | PT Bayan vs. AOI Electronics 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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