Correlation Between Ceragon Networks and Kartal Yenilenebilir
Can any of the company-specific risk be diversified away by investing in both Ceragon Networks and Kartal Yenilenebilir 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 Kartal Yenilenebilir into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ceragon Networks and Kartal Yenilenebilir Enerji, you can compare the effects of market volatilities on Ceragon Networks and Kartal Yenilenebilir 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 Kartal Yenilenebilir. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ceragon Networks and Kartal Yenilenebilir.
Diversification Opportunities for Ceragon Networks and Kartal Yenilenebilir
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Ceragon and Kartal is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Ceragon Networks and Kartal Yenilenebilir Enerji in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kartal Yenilenebilir 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 Kartal Yenilenebilir. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kartal Yenilenebilir has no effect on the direction of Ceragon Networks i.e., Ceragon Networks and Kartal Yenilenebilir go up and down completely randomly.
Pair Corralation between Ceragon Networks and Kartal Yenilenebilir
Given the investment horizon of 90 days Ceragon Networks is expected to generate 2.6 times more return on investment than Kartal Yenilenebilir. However, Ceragon Networks is 2.6 times more volatile than Kartal Yenilenebilir Enerji. It trades about 0.45 of its potential returns per unit of risk. Kartal Yenilenebilir Enerji is currently generating about -0.06 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 | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Ceragon Networks vs. Kartal Yenilenebilir Enerji
Performance |
| Timeline |
| Ceragon Networks |
| Kartal Yenilenebilir |
Ceragon Networks and Kartal Yenilenebilir Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ceragon Networks and Kartal Yenilenebilir
The main advantage of trading using opposite Ceragon Networks and Kartal Yenilenebilir positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ceragon Networks position performs unexpectedly, Kartal Yenilenebilir 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 Kartal Yenilenebilir will offset losses from the drop in Kartal Yenilenebilir'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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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