Correlation Between Ceragon Networks and Lord Abbett
Can any of the company-specific risk be diversified away by investing in both Ceragon Networks and Lord Abbett 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 Lord Abbett into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ceragon Networks and Lord Abbett Emerging, you can compare the effects of market volatilities on Ceragon Networks and Lord Abbett 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 Lord Abbett. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ceragon Networks and Lord Abbett.
Diversification Opportunities for Ceragon Networks and Lord Abbett
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ceragon and Lord is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Ceragon Networks and Lord Abbett Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lord Abbett Emerging 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 Lord Abbett. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lord Abbett Emerging has no effect on the direction of Ceragon Networks i.e., Ceragon Networks and Lord Abbett go up and down completely randomly.
Pair Corralation between Ceragon Networks and Lord Abbett
Given the investment horizon of 90 days Ceragon Networks is expected to generate 16.72 times more return on investment than Lord Abbett. However, Ceragon Networks is 16.72 times more volatile than Lord Abbett Emerging. It trades about 0.6 of its potential returns per unit of risk. Lord Abbett Emerging is currently generating about 0.14 per unit of risk. If you would invest 242.00 in Ceragon Networks on September 3, 2024 and sell it today you would earn a total of 212.00 from holding Ceragon Networks or generate 87.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ceragon Networks vs. Lord Abbett Emerging
Performance |
| Timeline |
| Ceragon Networks |
| Lord Abbett Emerging |
Ceragon Networks and Lord Abbett Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ceragon Networks and Lord Abbett
The main advantage of trading using opposite Ceragon Networks and Lord Abbett positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ceragon Networks position performs unexpectedly, Lord Abbett 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 Lord Abbett will offset losses from the drop in Lord Abbett's long position.| Ceragon Networks vs. Cambium Networks Corp | Ceragon Networks vs. KVH Industries | Ceragon Networks vs. Knowles Cor | Ceragon Networks vs. AudioCodes |
| Lord Abbett vs. Fidelity New Markets | Lord Abbett vs. Fidelity New Markets | Lord Abbett vs. Fidelity New Markets | Lord Abbett vs. Fidelity New Markets |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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