Correlation Between Ceragon Networks and SGI Dynamic
Can any of the company-specific risk be diversified away by investing in both Ceragon Networks and SGI Dynamic 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 SGI Dynamic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ceragon Networks and SGI Dynamic Tactical, you can compare the effects of market volatilities on Ceragon Networks and SGI Dynamic 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 SGI Dynamic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ceragon Networks and SGI Dynamic.
Diversification Opportunities for Ceragon Networks and SGI Dynamic
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ceragon and SGI is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Ceragon Networks and SGI Dynamic Tactical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SGI Dynamic Tactical 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 SGI Dynamic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SGI Dynamic Tactical has no effect on the direction of Ceragon Networks i.e., Ceragon Networks and SGI Dynamic go up and down completely randomly.
Pair Corralation between Ceragon Networks and SGI Dynamic
Given the investment horizon of 90 days Ceragon Networks is expected to under-perform the SGI Dynamic. In addition to that, Ceragon Networks is 6.29 times more volatile than SGI Dynamic Tactical. It trades about -0.01 of its total potential returns per unit of risk. SGI Dynamic Tactical is currently generating about -0.01 per unit of volatility. If you would invest 2,699 in SGI Dynamic Tactical on January 7, 2025 and sell it today you would lose (30.00) from holding SGI Dynamic Tactical or give up 1.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ceragon Networks vs. SGI Dynamic Tactical
Performance |
| Timeline |
| Ceragon Networks |
| SGI Dynamic Tactical |
Ceragon Networks and SGI Dynamic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ceragon Networks and SGI Dynamic
The main advantage of trading using opposite Ceragon Networks and SGI Dynamic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ceragon Networks position performs unexpectedly, SGI Dynamic 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 SGI Dynamic will offset losses from the drop in SGI Dynamic's long position.| Ceragon Networks vs. Cambium Networks Corp | Ceragon Networks vs. KVH Industries | Ceragon Networks vs. Knowles Cor | Ceragon Networks vs. AudioCodes |
| SGI Dynamic vs. iShares Core Growth | SGI Dynamic vs. iShares Core Moderate | SGI Dynamic vs. iShares Core Conservative | SGI Dynamic vs. iShares Core Total |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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