Correlation Between Ceragon Networks and Fidelity Climate
Can any of the company-specific risk be diversified away by investing in both Ceragon Networks and Fidelity Climate 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 Fidelity Climate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ceragon Networks and Fidelity Climate Action, you can compare the effects of market volatilities on Ceragon Networks and Fidelity Climate 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 Fidelity Climate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ceragon Networks and Fidelity Climate.
Diversification Opportunities for Ceragon Networks and Fidelity Climate
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Ceragon and Fidelity is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Ceragon Networks and Fidelity Climate Action in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Climate Action 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 Fidelity Climate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Climate Action has no effect on the direction of Ceragon Networks i.e., Ceragon Networks and Fidelity Climate go up and down completely randomly.
Pair Corralation between Ceragon Networks and Fidelity Climate
Given the investment horizon of 90 days Ceragon Networks is expected to generate 3.02 times more return on investment than Fidelity Climate. However, Ceragon Networks is 3.02 times more volatile than Fidelity Climate Action. It trades about 0.07 of its potential returns per unit of risk. Fidelity Climate Action 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 | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ceragon Networks vs. Fidelity Climate Action
Performance |
| Timeline |
| Ceragon Networks |
| Fidelity Climate Action |
Ceragon Networks and Fidelity Climate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ceragon Networks and Fidelity Climate
The main advantage of trading using opposite Ceragon Networks and Fidelity Climate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ceragon Networks position performs unexpectedly, Fidelity Climate 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 Fidelity Climate will offset losses from the drop in Fidelity Climate's long position.| Ceragon Networks vs. Cambium Networks Corp | Ceragon Networks vs. KVH Industries | Ceragon Networks vs. Knowles Cor | Ceragon Networks vs. AudioCodes |
| Fidelity Climate vs. Fidelity Pacific Basin | Fidelity Climate vs. Fidelity Europe Fund | Fidelity Climate vs. Fidelity International Capital | Fidelity Climate vs. Fidelity Overseas Fund |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |