Correlation Between Ceragon Networks and HSBC ETFs
Can any of the company-specific risk be diversified away by investing in both Ceragon Networks and HSBC ETFs 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 HSBC ETFs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ceragon Networks and HSBC ETFs Public, you can compare the effects of market volatilities on Ceragon Networks and HSBC ETFs 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 HSBC ETFs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ceragon Networks and HSBC ETFs.
Diversification Opportunities for Ceragon Networks and HSBC ETFs
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Ceragon and HSBC is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Ceragon Networks and HSBC ETFs Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HSBC ETFs Public 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 HSBC ETFs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HSBC ETFs Public has no effect on the direction of Ceragon Networks i.e., Ceragon Networks and HSBC ETFs go up and down completely randomly.
Pair Corralation between Ceragon Networks and HSBC ETFs
Given the investment horizon of 90 days Ceragon Networks is expected to generate 4.27 times more return on investment than HSBC ETFs. However, Ceragon Networks is 4.27 times more volatile than HSBC ETFs Public. It trades about 0.15 of its potential returns per unit of risk. HSBC ETFs Public is currently generating about 0.14 per unit of risk. If you would invest 257.00 in Ceragon Networks on September 3, 2024 and sell it today you would earn a total of 197.00 from holding Ceragon Networks or generate 76.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 97.66% |
| Values | Daily Returns |
Ceragon Networks vs. HSBC ETFs Public
Performance |
| Timeline |
| Ceragon Networks |
| HSBC ETFs Public |
Ceragon Networks and HSBC ETFs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ceragon Networks and HSBC ETFs
The main advantage of trading using opposite Ceragon Networks and HSBC ETFs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ceragon Networks position performs unexpectedly, HSBC ETFs 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 HSBC ETFs will offset losses from the drop in HSBC ETFs' long position.| Ceragon Networks vs. Cambium Networks Corp | Ceragon Networks vs. KVH Industries | Ceragon Networks vs. Knowles Cor | Ceragon Networks vs. AudioCodes |
| HSBC ETFs vs. HSBC FTSE EPRA | HSBC ETFs vs. HSBC SP 500 | HSBC ETFs vs. HSBC MSCI Emerging | HSBC ETFs vs. HSBC NASDAQ Global |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |