Correlation Between Ceragon Networks and IQ Candriam
Can any of the company-specific risk be diversified away by investing in both Ceragon Networks and IQ Candriam 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 IQ Candriam into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ceragon Networks and IQ Candriam ESG, you can compare the effects of market volatilities on Ceragon Networks and IQ Candriam 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 IQ Candriam. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ceragon Networks and IQ Candriam.
Diversification Opportunities for Ceragon Networks and IQ Candriam
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ceragon and IQSU is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Ceragon Networks and IQ Candriam ESG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IQ Candriam ESG 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 IQ Candriam. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IQ Candriam ESG has no effect on the direction of Ceragon Networks i.e., Ceragon Networks and IQ Candriam go up and down completely randomly.
Pair Corralation between Ceragon Networks and IQ Candriam
Given the investment horizon of 90 days Ceragon Networks is expected to generate 12.14 times more return on investment than IQ Candriam. However, Ceragon Networks is 12.14 times more volatile than IQ Candriam ESG. It trades about 0.45 of its potential returns per unit of risk. IQ Candriam ESG is currently generating about 0.19 per unit of risk. If you would invest 253.00 in Ceragon Networks on September 12, 2024 and sell it today you would earn a total of 197.00 from holding Ceragon Networks or generate 77.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ceragon Networks vs. IQ Candriam ESG
Performance |
| Timeline |
| Ceragon Networks |
| IQ Candriam ESG |
Ceragon Networks and IQ Candriam Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ceragon Networks and IQ Candriam
The main advantage of trading using opposite Ceragon Networks and IQ Candriam positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ceragon Networks position performs unexpectedly, IQ Candriam 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 IQ Candriam will offset losses from the drop in IQ Candriam's long position.| Ceragon Networks vs. Cambium Networks Corp | Ceragon Networks vs. KVH Industries | Ceragon Networks vs. Knowles Cor | Ceragon Networks vs. AudioCodes |
| IQ Candriam vs. IQ Candriam ESG | IQ Candriam vs. Xtrackers MSCI USA | IQ Candriam vs. Xtrackers SP 500 | IQ Candriam vs. Nuveen ESG Large Cap |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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