Correlation Between Ceragon Networks and China Medicine
Can any of the company-specific risk be diversified away by investing in both Ceragon Networks and China Medicine 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 China Medicine into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ceragon Networks and China Medicine, you can compare the effects of market volatilities on Ceragon Networks and China Medicine 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 China Medicine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ceragon Networks and China Medicine.
Diversification Opportunities for Ceragon Networks and China Medicine
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Ceragon and China is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Ceragon Networks and China Medicine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Medicine 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 China Medicine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Medicine has no effect on the direction of Ceragon Networks i.e., Ceragon Networks and China Medicine go up and down completely randomly.
Pair Corralation between Ceragon Networks and China Medicine
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 | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Ceragon Networks vs. China Medicine
Performance |
| Timeline |
| Ceragon Networks |
| China Medicine |
Ceragon Networks and China Medicine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ceragon Networks and China Medicine
The main advantage of trading using opposite Ceragon Networks and China Medicine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ceragon Networks position performs unexpectedly, China Medicine 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 China Medicine will offset losses from the drop in China Medicine's long position.| Ceragon Networks vs. Cambium Networks Corp | Ceragon Networks vs. KVH Industries | Ceragon Networks vs. Knowles Cor | Ceragon Networks vs. AudioCodes |
| China Medicine vs. Cardinal Health | China Medicine vs. Henry Schein | China Medicine vs. Owens Minor | China Medicine vs. Patterson Companies |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |