Correlation Between Ceragon Networks and Global X
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By analyzing existing cross correlation between Ceragon Networks and Global X SP, you can compare the effects of market volatilities on Ceragon Networks and Global X 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 Global X. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ceragon Networks and Global X.
Diversification Opportunities for Ceragon Networks and Global X
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ceragon and Global is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Ceragon Networks and Global X SP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X SP 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 Global X. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global X SP has no effect on the direction of Ceragon Networks i.e., Ceragon Networks and Global X go up and down completely randomly.
Pair Corralation between Ceragon Networks and Global X
Given the investment horizon of 90 days Ceragon Networks is expected to generate 7.98 times more return on investment than Global X. However, Ceragon Networks is 7.98 times more volatile than Global X SP. It trades about 0.47 of its potential returns per unit of risk. Global X SP is currently generating about 0.43 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 | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Ceragon Networks vs. Global X SP
Performance |
| Timeline |
| Ceragon Networks |
| Global X SP |
Ceragon Networks and Global X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ceragon Networks and Global X
The main advantage of trading using opposite Ceragon Networks and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ceragon Networks position performs unexpectedly, Global X 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 Global X will offset losses from the drop in Global X's long position.| Ceragon Networks vs. Cambium Networks Corp | Ceragon Networks vs. KVH Industries | Ceragon Networks vs. Knowles Cor | Ceragon Networks vs. AudioCodes |
| Global X vs. UBS Fund Solutions | Global X vs. Xtrackers II | Global X vs. Xtrackers Nikkei 225 | Global X vs. iShares VII PLC |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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