Correlation Between Ceragon Networks and Cowen
Can any of the company-specific risk be diversified away by investing in both Ceragon Networks and Cowen 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 Cowen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ceragon Networks and Cowen Group, you can compare the effects of market volatilities on Ceragon Networks and Cowen 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 Cowen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ceragon Networks and Cowen.
Diversification Opportunities for Ceragon Networks and Cowen
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ceragon and Cowen is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Ceragon Networks and Cowen Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cowen Group 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 Cowen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cowen Group has no effect on the direction of Ceragon Networks i.e., Ceragon Networks and Cowen go up and down completely randomly.
Pair Corralation between Ceragon Networks and Cowen
If you would invest 252.00 in Ceragon Networks on September 3, 2024 and sell it today you would earn a total of 202.00 from holding Ceragon Networks or generate 80.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 2.38% |
| Values | Daily Returns |
Ceragon Networks vs. Cowen Group
Performance |
| Timeline |
| Ceragon Networks |
| Cowen Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Ceragon Networks and Cowen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ceragon Networks and Cowen
The main advantage of trading using opposite Ceragon Networks and Cowen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ceragon Networks position performs unexpectedly, Cowen 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 Cowen will offset losses from the drop in Cowen's long position.| Ceragon Networks vs. Cambium Networks Corp | Ceragon Networks vs. KVH Industries | Ceragon Networks vs. Knowles Cor | Ceragon Networks vs. AudioCodes |
| Cowen vs. Ihuman Inc | Cowen vs. Where Food Comes | Cowen vs. Cadence Design Systems | Cowen vs. Zane Interactive Publishing |
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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