Correlation Between Ceragon Networks and TTM Technologies
Can any of the company-specific risk be diversified away by investing in both Ceragon Networks and TTM Technologies 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 TTM Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ceragon Networks and TTM Technologies, you can compare the effects of market volatilities on Ceragon Networks and TTM Technologies 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 TTM Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ceragon Networks and TTM Technologies.
Diversification Opportunities for Ceragon Networks and TTM Technologies
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ceragon and TTM is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Ceragon Networks and TTM Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TTM Technologies 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 TTM Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TTM Technologies has no effect on the direction of Ceragon Networks i.e., Ceragon Networks and TTM Technologies go up and down completely randomly.
Pair Corralation between Ceragon Networks and TTM Technologies
Given the investment horizon of 90 days Ceragon Networks is expected to generate 4.94 times more return on investment than TTM Technologies. However, Ceragon Networks is 4.94 times more volatile than TTM Technologies. It trades about 0.46 of its potential returns per unit of risk. TTM Technologies is currently generating about -0.02 per unit of risk. If you would invest 253.00 in Ceragon Networks on September 12, 2024 and sell it today you would earn a total of 197.00 from holding Ceragon Networks or generate 77.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Ceragon Networks vs. TTM Technologies
Performance |
| Timeline |
| Ceragon Networks |
| TTM Technologies |
Ceragon Networks and TTM Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ceragon Networks and TTM Technologies
The main advantage of trading using opposite Ceragon Networks and TTM Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ceragon Networks position performs unexpectedly, TTM Technologies 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 TTM Technologies will offset losses from the drop in TTM Technologies' long position.| Ceragon Networks vs. Cambium Networks Corp | Ceragon Networks vs. KVH Industries | Ceragon Networks vs. Knowles Cor | Ceragon Networks vs. AudioCodes |
| TTM Technologies vs. Benchmark Electronics | TTM Technologies vs. Meiko Electronics Co | TTM Technologies vs. Superior Plus Corp | TTM Technologies vs. SIVERS SEMICONDUCTORS AB |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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