Correlation Between Ceragon Networks and Fjordland Exploration
Can any of the company-specific risk be diversified away by investing in both Ceragon Networks and Fjordland Exploration 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 Fjordland Exploration into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ceragon Networks and Fjordland Exploration, you can compare the effects of market volatilities on Ceragon Networks and Fjordland Exploration 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 Fjordland Exploration. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ceragon Networks and Fjordland Exploration.
Diversification Opportunities for Ceragon Networks and Fjordland Exploration
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ceragon and Fjordland is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Ceragon Networks and Fjordland Exploration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fjordland Exploration 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 Fjordland Exploration. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fjordland Exploration has no effect on the direction of Ceragon Networks i.e., Ceragon Networks and Fjordland Exploration go up and down completely randomly.
Pair Corralation between Ceragon Networks and Fjordland Exploration
Given the investment horizon of 90 days Ceragon Networks is expected to generate 1.75 times less return on investment than Fjordland Exploration. But when comparing it to its historical volatility, Ceragon Networks is 4.7 times less risky than Fjordland Exploration. It trades about 0.1 of its potential returns per unit of risk. Fjordland Exploration is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 3.00 in Fjordland Exploration on September 4, 2024 and sell it today you would lose (2.00) from holding Fjordland Exploration or give up 66.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ceragon Networks vs. Fjordland Exploration
Performance |
| Timeline |
| Ceragon Networks |
| Fjordland Exploration |
Ceragon Networks and Fjordland Exploration Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ceragon Networks and Fjordland Exploration
The main advantage of trading using opposite Ceragon Networks and Fjordland Exploration positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ceragon Networks position performs unexpectedly, Fjordland Exploration 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 Fjordland Exploration will offset losses from the drop in Fjordland Exploration's long position.| Ceragon Networks vs. Cambium Networks Corp | Ceragon Networks vs. KVH Industries | Ceragon Networks vs. Knowles Cor | Ceragon Networks vs. AudioCodes |
| Fjordland Exploration vs. First Majestic Silver | Fjordland Exploration vs. Ivanhoe Energy | Fjordland Exploration vs. Orezone Gold Corp | Fjordland Exploration vs. Faraday Copper Corp |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |