Correlation Between Ceragon Networks and Smead International
Can any of the company-specific risk be diversified away by investing in both Ceragon Networks and Smead International 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 Smead International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ceragon Networks and Smead International Value, you can compare the effects of market volatilities on Ceragon Networks and Smead International 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 Smead International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ceragon Networks and Smead International.
Diversification Opportunities for Ceragon Networks and Smead International
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ceragon and Smead is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Ceragon Networks and Smead International Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Smead International Value 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 Smead International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Smead International Value has no effect on the direction of Ceragon Networks i.e., Ceragon Networks and Smead International go up and down completely randomly.
Pair Corralation between Ceragon Networks and Smead International
Given the investment horizon of 90 days Ceragon Networks is expected to under-perform the Smead International. In addition to that, Ceragon Networks is 6.49 times more volatile than Smead International Value. It trades about -0.36 of its total potential returns per unit of risk. Smead International Value is currently generating about -0.06 per unit of volatility. If you would invest 5,347 in Smead International Value on December 1, 2024 and sell it today you would lose (68.00) from holding Smead International Value or give up 1.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ceragon Networks vs. Smead International Value
Performance |
| Timeline |
| Ceragon Networks |
| Smead International Value |
Ceragon Networks and Smead International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ceragon Networks and Smead International
The main advantage of trading using opposite Ceragon Networks and Smead International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ceragon Networks position performs unexpectedly, Smead International 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 Smead International will offset losses from the drop in Smead International's long position.| Ceragon Networks vs. Cambium Networks Corp | Ceragon Networks vs. KVH Industries | Ceragon Networks vs. Knowles Cor | Ceragon Networks vs. AudioCodes |
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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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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