Correlation Between Ceragon Networks and Ushio
Can any of the company-specific risk be diversified away by investing in both Ceragon Networks and Ushio 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 Ushio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ceragon Networks and Ushio Inc, you can compare the effects of market volatilities on Ceragon Networks and Ushio 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 Ushio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ceragon Networks and Ushio.
Diversification Opportunities for Ceragon Networks and Ushio
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ceragon and Ushio is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Ceragon Networks and Ushio Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ushio Inc 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 Ushio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ushio Inc has no effect on the direction of Ceragon Networks i.e., Ceragon Networks and Ushio go up and down completely randomly.
Pair Corralation between Ceragon Networks and Ushio
Given the investment horizon of 90 days Ceragon Networks is expected to generate 14.53 times more return on investment than Ushio. However, Ceragon Networks is 14.53 times more volatile than Ushio Inc. It trades about 0.49 of its potential returns per unit of risk. Ushio Inc is currently generating about -0.19 per unit of risk. If you would invest 242.00 in Ceragon Networks on September 5, 2024 and sell it today you would earn a total of 195.00 from holding Ceragon Networks or generate 80.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Ceragon Networks vs. Ushio Inc
Performance |
| Timeline |
| Ceragon Networks |
| Ushio Inc |
Ceragon Networks and Ushio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ceragon Networks and Ushio
The main advantage of trading using opposite Ceragon Networks and Ushio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ceragon Networks position performs unexpectedly, Ushio 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 Ushio will offset losses from the drop in Ushio's long position.| Ceragon Networks vs. Cambium Networks Corp | Ceragon Networks vs. KVH Industries | Ceragon Networks vs. Knowles Cor | Ceragon Networks vs. AudioCodes |
| Ushio vs. Dear Cashmere Holding | Ushio vs. Goff Corp | Ushio vs. Wialan Technologies | Ushio vs. Cgrowth Capital |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |