Correlation Between Ceragon Networks and SkiStar AB
Can any of the company-specific risk be diversified away by investing in both Ceragon Networks and SkiStar AB 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 SkiStar AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ceragon Networks and SkiStar AB, you can compare the effects of market volatilities on Ceragon Networks and SkiStar AB 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 SkiStar AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ceragon Networks and SkiStar AB.
Diversification Opportunities for Ceragon Networks and SkiStar AB
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Ceragon and SkiStar is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Ceragon Networks and SkiStar AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SkiStar AB 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 SkiStar AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SkiStar AB has no effect on the direction of Ceragon Networks i.e., Ceragon Networks and SkiStar AB go up and down completely randomly.
Pair Corralation between Ceragon Networks and SkiStar AB
Given the investment horizon of 90 days Ceragon Networks is expected to generate 5.22 times more return on investment than SkiStar AB. However, Ceragon Networks is 5.22 times more volatile than SkiStar AB. It trades about 0.47 of its potential returns per unit of risk. SkiStar AB is currently generating about 0.07 per unit of risk. If you would invest 242.00 in Ceragon Networks on September 4, 2024 and sell it today you would earn a total of 174.00 from holding Ceragon Networks or generate 71.9% 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. SkiStar AB
Performance |
| Timeline |
| Ceragon Networks |
| SkiStar AB |
Ceragon Networks and SkiStar AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ceragon Networks and SkiStar AB
The main advantage of trading using opposite Ceragon Networks and SkiStar AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ceragon Networks position performs unexpectedly, SkiStar AB 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 SkiStar AB will offset losses from the drop in SkiStar AB's long position.| Ceragon Networks vs. Cambium Networks Corp | Ceragon Networks vs. KVH Industries | Ceragon Networks vs. Knowles Cor | Ceragon Networks vs. AudioCodes |
| SkiStar AB vs. Peab AB | SkiStar AB vs. Axfood AB | SkiStar AB vs. Thule Group AB | SkiStar AB vs. Avanza Bank Holding |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |