Correlation Between Ceragon Networks and Calamos Timpani
Can any of the company-specific risk be diversified away by investing in both Ceragon Networks and Calamos Timpani 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 Calamos Timpani into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ceragon Networks and Calamos Timpani Smid, you can compare the effects of market volatilities on Ceragon Networks and Calamos Timpani 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 Calamos Timpani. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ceragon Networks and Calamos Timpani.
Diversification Opportunities for Ceragon Networks and Calamos Timpani
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ceragon and Calamos is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Ceragon Networks and Calamos Timpani Smid in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Timpani Smid 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 Calamos Timpani. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Timpani Smid has no effect on the direction of Ceragon Networks i.e., Ceragon Networks and Calamos Timpani go up and down completely randomly.
Pair Corralation between Ceragon Networks and Calamos Timpani
Given the investment horizon of 90 days Ceragon Networks is expected to generate 2.14 times more return on investment than Calamos Timpani. However, Ceragon Networks is 2.14 times more volatile than Calamos Timpani Smid. It trades about 0.07 of its potential returns per unit of risk. Calamos Timpani Smid is currently generating about 0.08 per unit of risk. If you would invest 196.00 in Ceragon Networks on September 4, 2024 and sell it today you would earn a total of 220.00 from holding Ceragon Networks or generate 112.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ceragon Networks vs. Calamos Timpani Smid
Performance |
| Timeline |
| Ceragon Networks |
| Calamos Timpani Smid |
Ceragon Networks and Calamos Timpani Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ceragon Networks and Calamos Timpani
The main advantage of trading using opposite Ceragon Networks and Calamos Timpani positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ceragon Networks position performs unexpectedly, Calamos Timpani 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 Calamos Timpani will offset losses from the drop in Calamos Timpani's long position.| Ceragon Networks vs. Cambium Networks Corp | Ceragon Networks vs. KVH Industries | Ceragon Networks vs. Knowles Cor | Ceragon Networks vs. AudioCodes |
| Calamos Timpani vs. Dreyfus Technology Growth | Calamos Timpani vs. Technology Ultrasector Profund | Calamos Timpani vs. Allianzgi Technology Fund | Calamos Timpani vs. Dreyfus Technology Growth |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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