Correlation Between Ceragon Networks and Digital Realty
Can any of the company-specific risk be diversified away by investing in both Ceragon Networks and Digital Realty 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 Digital Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ceragon Networks and Digital Realty Trust, you can compare the effects of market volatilities on Ceragon Networks and Digital Realty 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 Digital Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ceragon Networks and Digital Realty.
Diversification Opportunities for Ceragon Networks and Digital Realty
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ceragon and Digital is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Ceragon Networks and Digital Realty Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Digital Realty Trust 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 Digital Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Digital Realty Trust has no effect on the direction of Ceragon Networks i.e., Ceragon Networks and Digital Realty go up and down completely randomly.
Pair Corralation between Ceragon Networks and Digital Realty
Given the investment horizon of 90 days Ceragon Networks is expected to generate 3.11 times more return on investment than Digital Realty. However, Ceragon Networks is 3.11 times more volatile than Digital Realty Trust. It trades about 0.47 of its potential returns per unit of risk. Digital Realty Trust is currently generating about 0.31 per unit of risk. If you would invest 242.00 in Ceragon Networks on September 4, 2024 and sell it today you would earn a total of 174.00 from holding Ceragon Networks or generate 71.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Ceragon Networks vs. Digital Realty Trust
Performance |
| Timeline |
| Ceragon Networks |
| Digital Realty Trust |
Ceragon Networks and Digital Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ceragon Networks and Digital Realty
The main advantage of trading using opposite Ceragon Networks and Digital Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ceragon Networks position performs unexpectedly, Digital Realty 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 Digital Realty will offset losses from the drop in Digital Realty's long position.| Ceragon Networks vs. Cambium Networks Corp | Ceragon Networks vs. KVH Industries | Ceragon Networks vs. Knowles Cor | Ceragon Networks vs. AudioCodes |
| Digital Realty vs. ORMAT TECHNOLOGIES | Digital Realty vs. YOOMA WELLNESS INC | Digital Realty vs. Bumrungrad Hospital Public | Digital Realty vs. Axcelis Technologies |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |