Correlation Between Ceragon Networks and Blue Whale
Can any of the company-specific risk be diversified away by investing in both Ceragon Networks and Blue Whale 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 Blue Whale into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ceragon Networks and Blue Whale Acquisition, you can compare the effects of market volatilities on Ceragon Networks and Blue Whale 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 Blue Whale. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ceragon Networks and Blue Whale.
Diversification Opportunities for Ceragon Networks and Blue Whale
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ceragon and Blue is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Ceragon Networks and Blue Whale Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blue Whale Acquisition 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 Blue Whale. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blue Whale Acquisition has no effect on the direction of Ceragon Networks i.e., Ceragon Networks and Blue Whale go up and down completely randomly.
Pair Corralation between Ceragon Networks and Blue Whale
If you would invest 256.00 in Ceragon Networks on September 13, 2024 and sell it today you would earn a total of 235.00 from holding Ceragon Networks or generate 91.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Ceragon Networks vs. Blue Whale Acquisition
Performance |
| Timeline |
| Ceragon Networks |
| Blue Whale Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Ceragon Networks and Blue Whale Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ceragon Networks and Blue Whale
The main advantage of trading using opposite Ceragon Networks and Blue Whale positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ceragon Networks position performs unexpectedly, Blue Whale 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 Blue Whale will offset losses from the drop in Blue Whale's long position.| Ceragon Networks vs. Cambium Networks Corp | Ceragon Networks vs. KVH Industries | Ceragon Networks vs. Knowles Cor | Ceragon Networks vs. AudioCodes |
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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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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