Correlation Between Ceragon Networks and Marine Bancorp
Can any of the company-specific risk be diversified away by investing in both Ceragon Networks and Marine Bancorp 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 Marine Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ceragon Networks and Marine Bancorp of, you can compare the effects of market volatilities on Ceragon Networks and Marine Bancorp 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 Marine Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ceragon Networks and Marine Bancorp.
Diversification Opportunities for Ceragon Networks and Marine Bancorp
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Ceragon and Marine is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Ceragon Networks and Marine Bancorp of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marine Bancorp 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 Marine Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marine Bancorp has no effect on the direction of Ceragon Networks i.e., Ceragon Networks and Marine Bancorp go up and down completely randomly.
Pair Corralation between Ceragon Networks and Marine Bancorp
Given the investment horizon of 90 days Ceragon Networks is expected to generate 113.81 times more return on investment than Marine Bancorp. However, Ceragon Networks is 113.81 times more volatile than Marine Bancorp of. It trades about 0.45 of its potential returns per unit of risk. Marine Bancorp of is currently generating about 0.22 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 | 95.45% |
| Values | Daily Returns |
Ceragon Networks vs. Marine Bancorp of
Performance |
| Timeline |
| Ceragon Networks |
| Marine Bancorp |
Ceragon Networks and Marine Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ceragon Networks and Marine Bancorp
The main advantage of trading using opposite Ceragon Networks and Marine Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ceragon Networks position performs unexpectedly, Marine Bancorp 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 Marine Bancorp will offset losses from the drop in Marine Bancorp's long position.| Ceragon Networks vs. Cambium Networks Corp | Ceragon Networks vs. KVH Industries | Ceragon Networks vs. Knowles Cor | Ceragon Networks vs. AudioCodes |
| Marine Bancorp vs. Mills Music Trust | Marine Bancorp vs. East Africa Metals | Marine Bancorp vs. Chester Mining | Marine Bancorp vs. AKITA Drilling |
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 CEOs Directory module to screen CEOs from public companies around the world.
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