Correlation Between Ceragon Networks and MetalsGrove Mining
Can any of the company-specific risk be diversified away by investing in both Ceragon Networks and MetalsGrove Mining 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 MetalsGrove Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ceragon Networks and MetalsGrove Mining, you can compare the effects of market volatilities on Ceragon Networks and MetalsGrove Mining 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 MetalsGrove Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ceragon Networks and MetalsGrove Mining.
Diversification Opportunities for Ceragon Networks and MetalsGrove Mining
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ceragon and MetalsGrove is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Ceragon Networks and MetalsGrove Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MetalsGrove Mining 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 MetalsGrove Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MetalsGrove Mining has no effect on the direction of Ceragon Networks i.e., Ceragon Networks and MetalsGrove Mining go up and down completely randomly.
Pair Corralation between Ceragon Networks and MetalsGrove Mining
Given the investment horizon of 90 days Ceragon Networks is expected to generate 1.07 times more return on investment than MetalsGrove Mining. However, Ceragon Networks is 1.07 times more volatile than MetalsGrove Mining. It trades about 0.6 of its potential returns per unit of risk. MetalsGrove Mining is currently generating about -0.13 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 | 95.24% |
| Values | Daily Returns |
Ceragon Networks vs. MetalsGrove Mining
Performance |
| Timeline |
| Ceragon Networks |
| MetalsGrove Mining |
Ceragon Networks and MetalsGrove Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ceragon Networks and MetalsGrove Mining
The main advantage of trading using opposite Ceragon Networks and MetalsGrove Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ceragon Networks position performs unexpectedly, MetalsGrove Mining 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 MetalsGrove Mining will offset losses from the drop in MetalsGrove Mining's long position.| Ceragon Networks vs. Cambium Networks Corp | Ceragon Networks vs. KVH Industries | Ceragon Networks vs. Knowles Cor | Ceragon Networks vs. AudioCodes |
| MetalsGrove Mining vs. Northern Star Resources | MetalsGrove Mining vs. Evolution Mining | MetalsGrove Mining vs. Bluescope Steel | MetalsGrove Mining vs. Aneka Tambang Tbk |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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