Correlation Between Ceragon Networks and Calida Holding
Can any of the company-specific risk be diversified away by investing in both Ceragon Networks and Calida Holding 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 Calida Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ceragon Networks and Calida Holding AG, you can compare the effects of market volatilities on Ceragon Networks and Calida Holding 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 Calida Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ceragon Networks and Calida Holding.
Diversification Opportunities for Ceragon Networks and Calida Holding
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ceragon and Calida is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Ceragon Networks and Calida Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calida Holding AG 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 Calida Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calida Holding AG has no effect on the direction of Ceragon Networks i.e., Ceragon Networks and Calida Holding go up and down completely randomly.
Pair Corralation between Ceragon Networks and Calida Holding
Given the investment horizon of 90 days Ceragon Networks is expected to generate 3.28 times more return on investment than Calida Holding. However, Ceragon Networks is 3.28 times more volatile than Calida Holding AG. It trades about 0.6 of its potential returns per unit of risk. Calida Holding AG is currently generating about -0.15 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 Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Ceragon Networks vs. Calida Holding AG
Performance |
| Timeline |
| Ceragon Networks |
| Calida Holding AG |
Ceragon Networks and Calida Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ceragon Networks and Calida Holding
The main advantage of trading using opposite Ceragon Networks and Calida Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ceragon Networks position performs unexpectedly, Calida Holding 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 Calida Holding will offset losses from the drop in Calida Holding's long position.| Ceragon Networks vs. Cambium Networks Corp | Ceragon Networks vs. KVH Industries | Ceragon Networks vs. Knowles Cor | Ceragon Networks vs. AudioCodes |
| Calida Holding vs. Swatch Group AG | Calida Holding vs. Helvetia Holding AG | Calida Holding vs. Emmi AG | Calida Holding vs. Swissquote Group Holding |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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