Correlation Between Ceragon Networks and Northern Lion
Can any of the company-specific risk be diversified away by investing in both Ceragon Networks and Northern Lion 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 Northern Lion into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ceragon Networks and Northern Lion Gold, you can compare the effects of market volatilities on Ceragon Networks and Northern Lion 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 Northern Lion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ceragon Networks and Northern Lion.
Diversification Opportunities for Ceragon Networks and Northern Lion
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ceragon and Northern is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ceragon Networks and Northern Lion Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Northern Lion Gold 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 Northern Lion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Northern Lion Gold has no effect on the direction of Ceragon Networks i.e., Ceragon Networks and Northern Lion go up and down completely randomly.
Pair Corralation between Ceragon Networks and Northern Lion
If you would invest 262.00 in Ceragon Networks on September 5, 2024 and sell it today you would earn a total of 177.00 from holding Ceragon Networks or generate 67.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.2% |
| Values | Daily Returns |
Ceragon Networks vs. Northern Lion Gold
Performance |
| Timeline |
| Ceragon Networks |
| Northern Lion Gold |
Ceragon Networks and Northern Lion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ceragon Networks and Northern Lion
The main advantage of trading using opposite Ceragon Networks and Northern Lion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ceragon Networks position performs unexpectedly, Northern Lion 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 Northern Lion will offset losses from the drop in Northern Lion's long position.| Ceragon Networks vs. Cambium Networks Corp | Ceragon Networks vs. KVH Industries | Ceragon Networks vs. Knowles Cor | Ceragon Networks vs. AudioCodes |
| Northern Lion vs. Qubec Nickel Corp | Northern Lion vs. IGO Limited | Northern Lion vs. Avarone Metals | Northern Lion vs. Elcora Advanced Materials |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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