Correlation Between Ceragon Networks and Inflation Protection
Can any of the company-specific risk be diversified away by investing in both Ceragon Networks and Inflation Protection 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 Inflation Protection into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ceragon Networks and Inflation Protection Fund, you can compare the effects of market volatilities on Ceragon Networks and Inflation Protection 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 Inflation Protection. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ceragon Networks and Inflation Protection.
Diversification Opportunities for Ceragon Networks and Inflation Protection
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ceragon and Inflation is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Ceragon Networks and Inflation Protection Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inflation Protection 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 Inflation Protection. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inflation Protection has no effect on the direction of Ceragon Networks i.e., Ceragon Networks and Inflation Protection go up and down completely randomly.
Pair Corralation between Ceragon Networks and Inflation Protection
Given the investment horizon of 90 days Ceragon Networks is expected to generate 7.79 times more return on investment than Inflation Protection. However, Ceragon Networks is 7.79 times more volatile than Inflation Protection Fund. It trades about 0.07 of its potential returns per unit of risk. Inflation Protection Fund is currently generating about 0.02 per unit of risk. If you would invest 202.00 in Ceragon Networks on September 3, 2024 and sell it today you would earn a total of 252.00 from holding Ceragon Networks or generate 124.75% 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. Inflation Protection Fund
Performance |
| Timeline |
| Ceragon Networks |
| Inflation Protection |
Ceragon Networks and Inflation Protection Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ceragon Networks and Inflation Protection
The main advantage of trading using opposite Ceragon Networks and Inflation Protection positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ceragon Networks position performs unexpectedly, Inflation Protection 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 Inflation Protection will offset losses from the drop in Inflation Protection's long position.| Ceragon Networks vs. Cambium Networks Corp | Ceragon Networks vs. KVH Industries | Ceragon Networks vs. Knowles Cor | Ceragon Networks vs. AudioCodes |
| Inflation Protection vs. Jpmorgan Emerging Markets | Inflation Protection vs. Templeton Developing Markets | Inflation Protection vs. Rbc Emerging Markets | Inflation Protection vs. Locorr Market Trend |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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