Correlation Between Ceragon Networks and VanEck CMCI
Can any of the company-specific risk be diversified away by investing in both Ceragon Networks and VanEck CMCI 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 VanEck CMCI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ceragon Networks and VanEck CMCI Commodity, you can compare the effects of market volatilities on Ceragon Networks and VanEck CMCI 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 VanEck CMCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ceragon Networks and VanEck CMCI.
Diversification Opportunities for Ceragon Networks and VanEck CMCI
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ceragon and VanEck is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Ceragon Networks and VanEck CMCI Commodity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VanEck CMCI Commodity 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 VanEck CMCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VanEck CMCI Commodity has no effect on the direction of Ceragon Networks i.e., Ceragon Networks and VanEck CMCI go up and down completely randomly.
Pair Corralation between Ceragon Networks and VanEck CMCI
Given the investment horizon of 90 days Ceragon Networks is expected to generate 4.21 times more return on investment than VanEck CMCI. However, Ceragon Networks is 4.21 times more volatile than VanEck CMCI Commodity. It trades about 0.07 of its potential returns per unit of risk. VanEck CMCI Commodity is currently generating about 0.01 per unit of risk. If you would invest 217.00 in Ceragon Networks on September 3, 2024 and sell it today you would earn a total of 237.00 from holding Ceragon Networks or generate 109.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 67.79% |
| Values | Daily Returns |
Ceragon Networks vs. VanEck CMCI Commodity
Performance |
| Timeline |
| Ceragon Networks |
| VanEck CMCI Commodity |
Ceragon Networks and VanEck CMCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ceragon Networks and VanEck CMCI
The main advantage of trading using opposite Ceragon Networks and VanEck CMCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ceragon Networks position performs unexpectedly, VanEck CMCI 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 VanEck CMCI will offset losses from the drop in VanEck CMCI's long position.| Ceragon Networks vs. Cambium Networks Corp | Ceragon Networks vs. KVH Industries | Ceragon Networks vs. Knowles Cor | Ceragon Networks vs. AudioCodes |
| VanEck CMCI vs. ETRACS Bloomberg Commodity | VanEck CMCI vs. Neuberger Berman Commodity | VanEck CMCI vs. abrdn Bloomberg All | VanEck CMCI vs. abrdn Bloomberg All |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |