Correlation Between Ceragon Networks and Henry Schein
Can any of the company-specific risk be diversified away by investing in both Ceragon Networks and Henry Schein 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 Henry Schein into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ceragon Networks and Henry Schein, you can compare the effects of market volatilities on Ceragon Networks and Henry Schein 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 Henry Schein. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ceragon Networks and Henry Schein.
Diversification Opportunities for Ceragon Networks and Henry Schein
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ceragon and Henry is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Ceragon Networks and Henry Schein in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Henry Schein 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 Henry Schein. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Henry Schein has no effect on the direction of Ceragon Networks i.e., Ceragon Networks and Henry Schein go up and down completely randomly.
Pair Corralation between Ceragon Networks and Henry Schein
Given the investment horizon of 90 days Ceragon Networks is expected to generate 2.18 times more return on investment than Henry Schein. However, Ceragon Networks is 2.18 times more volatile than Henry Schein. It trades about 0.19 of its potential returns per unit of risk. Henry Schein is currently generating about 0.13 per unit of risk. If you would invest 294.00 in Ceragon Networks on September 3, 2024 and sell it today you would earn a total of 160.00 from holding Ceragon Networks or generate 54.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.46% |
| Values | Daily Returns |
Ceragon Networks vs. Henry Schein
Performance |
| Timeline |
| Ceragon Networks |
| Henry Schein |
Ceragon Networks and Henry Schein Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ceragon Networks and Henry Schein
The main advantage of trading using opposite Ceragon Networks and Henry Schein positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ceragon Networks position performs unexpectedly, Henry Schein 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 Henry Schein will offset losses from the drop in Henry Schein's long position.| Ceragon Networks vs. Cambium Networks Corp | Ceragon Networks vs. KVH Industries | Ceragon Networks vs. Knowles Cor | Ceragon Networks vs. AudioCodes |
| Henry Schein vs. MCEWEN MINING INC | Henry Schein vs. Zijin Mining Group | Henry Schein vs. LION ONE METALS | Henry Schein vs. Motorcar Parts of |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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