Correlation Between Ceragon Networks and SFI INVESTIMENTOS
Can any of the company-specific risk be diversified away by investing in both Ceragon Networks and SFI INVESTIMENTOS 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 SFI INVESTIMENTOS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ceragon Networks and SFI INVESTIMENTOS DO, you can compare the effects of market volatilities on Ceragon Networks and SFI INVESTIMENTOS 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 SFI INVESTIMENTOS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ceragon Networks and SFI INVESTIMENTOS.
Diversification Opportunities for Ceragon Networks and SFI INVESTIMENTOS
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ceragon and SFI is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Ceragon Networks and SFI INVESTIMENTOS DO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SFI INVESTIMENTOS 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 SFI INVESTIMENTOS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SFI INVESTIMENTOS has no effect on the direction of Ceragon Networks i.e., Ceragon Networks and SFI INVESTIMENTOS go up and down completely randomly.
Pair Corralation between Ceragon Networks and SFI INVESTIMENTOS
Given the investment horizon of 90 days Ceragon Networks is expected to generate 15.02 times less return on investment than SFI INVESTIMENTOS. But when comparing it to its historical volatility, Ceragon Networks is 20.77 times less risky than SFI INVESTIMENTOS. It trades about 0.08 of its potential returns per unit of risk. SFI INVESTIMENTOS DO is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,004 in SFI INVESTIMENTOS DO on September 12, 2024 and sell it today you would lose (742.00) from holding SFI INVESTIMENTOS DO or give up 73.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.73% |
| Values | Daily Returns |
Ceragon Networks vs. SFI INVESTIMENTOS DO
Performance |
| Timeline |
| Ceragon Networks |
| SFI INVESTIMENTOS |
Ceragon Networks and SFI INVESTIMENTOS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ceragon Networks and SFI INVESTIMENTOS
The main advantage of trading using opposite Ceragon Networks and SFI INVESTIMENTOS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ceragon Networks position performs unexpectedly, SFI INVESTIMENTOS 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 SFI INVESTIMENTOS will offset losses from the drop in SFI INVESTIMENTOS's long position.| Ceragon Networks vs. Cambium Networks Corp | Ceragon Networks vs. KVH Industries | Ceragon Networks vs. Knowles Cor | Ceragon Networks vs. AudioCodes |
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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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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