Correlation Between Ceragon Networks and MICROSOFT
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By analyzing existing cross correlation between Ceragon Networks and MICROSOFT PORATION, you can compare the effects of market volatilities on Ceragon Networks and MICROSOFT 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 MICROSOFT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ceragon Networks and MICROSOFT.
Diversification Opportunities for Ceragon Networks and MICROSOFT
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Ceragon and MICROSOFT is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Ceragon Networks and MICROSOFT PORATION in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MICROSOFT PORATION 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 MICROSOFT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MICROSOFT PORATION has no effect on the direction of Ceragon Networks i.e., Ceragon Networks and MICROSOFT go up and down completely randomly.
Pair Corralation between Ceragon Networks and MICROSOFT
Given the investment horizon of 90 days Ceragon Networks is expected to generate 3.03 times more return on investment than MICROSOFT. However, Ceragon Networks is 3.03 times more volatile than MICROSOFT PORATION. It trades about 0.19 of its potential returns per unit of risk. MICROSOFT PORATION is currently generating about 0.05 per unit of risk. If you would invest 248.00 in Ceragon Networks on September 5, 2024 and sell it today you would earn a total of 191.00 from holding Ceragon Networks or generate 77.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 97.65% |
| Values | Daily Returns |
Ceragon Networks vs. MICROSOFT PORATION
Performance |
| Timeline |
| Ceragon Networks |
| MICROSOFT PORATION |
Ceragon Networks and MICROSOFT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ceragon Networks and MICROSOFT
The main advantage of trading using opposite Ceragon Networks and MICROSOFT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ceragon Networks position performs unexpectedly, MICROSOFT 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 MICROSOFT will offset losses from the drop in MICROSOFT's long position.| Ceragon Networks vs. Cambium Networks Corp | Ceragon Networks vs. KVH Industries | Ceragon Networks vs. Knowles Cor | Ceragon Networks vs. AudioCodes |
| MICROSOFT vs. Neogen | MICROSOFT vs. Abcellera Biologics | MICROSOFT vs. Alvotech | MICROSOFT vs. Sellas Life Sciences |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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