Correlation Between Ceragon Networks and First Investors
Can any of the company-specific risk be diversified away by investing in both Ceragon Networks and First Investors 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 First Investors into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ceragon Networks and First Investors Tax, you can compare the effects of market volatilities on Ceragon Networks and First Investors 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 First Investors. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ceragon Networks and First Investors.
Diversification Opportunities for Ceragon Networks and First Investors
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ceragon and First is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Ceragon Networks and First Investors Tax in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Investors Tax 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 First Investors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Investors Tax has no effect on the direction of Ceragon Networks i.e., Ceragon Networks and First Investors go up and down completely randomly.
Pair Corralation between Ceragon Networks and First Investors
Given the investment horizon of 90 days Ceragon Networks is expected to generate 10.15 times more return on investment than First Investors. However, Ceragon Networks is 10.15 times more volatile than First Investors Tax. It trades about 0.08 of its potential returns per unit of risk. First Investors Tax is currently generating about 0.07 per unit of risk. If you would invest 206.00 in Ceragon Networks on September 12, 2024 and sell it today you would earn a total of 244.00 from holding Ceragon Networks or generate 118.45% 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. First Investors Tax
Performance |
| Timeline |
| Ceragon Networks |
| First Investors Tax |
Ceragon Networks and First Investors Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ceragon Networks and First Investors
The main advantage of trading using opposite Ceragon Networks and First Investors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ceragon Networks position performs unexpectedly, First Investors 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 First Investors will offset losses from the drop in First Investors' long position.| Ceragon Networks vs. Cambium Networks Corp | Ceragon Networks vs. KVH Industries | Ceragon Networks vs. Knowles Cor | Ceragon Networks vs. AudioCodes |
| First Investors vs. Calamos Dynamic Convertible | First Investors vs. Gabelli Convertible And | First Investors vs. Absolute Convertible Arbitrage | First Investors vs. Lord Abbett Convertible |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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