Correlation Between Ceragon Networks and United States
Can any of the company-specific risk be diversified away by investing in both Ceragon Networks and United States 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 United States into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ceragon Networks and United States Basketball, you can compare the effects of market volatilities on Ceragon Networks and United States 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 United States. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ceragon Networks and United States.
Diversification Opportunities for Ceragon Networks and United States
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Ceragon and United is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Ceragon Networks and United States Basketball in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United States Basketball 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 United States. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United States Basketball has no effect on the direction of Ceragon Networks i.e., Ceragon Networks and United States go up and down completely randomly.
Pair Corralation between Ceragon Networks and United States
Given the investment horizon of 90 days Ceragon Networks is expected to generate 14.97 times less return on investment than United States. But when comparing it to its historical volatility, Ceragon Networks is 11.43 times less risky than United States. It trades about 0.07 of its potential returns per unit of risk. United States Basketball is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 38.00 in United States Basketball on September 4, 2024 and sell it today you would lose (11.00) from holding United States Basketball or give up 28.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 30.51% |
| Values | Daily Returns |
Ceragon Networks vs. United States Basketball
Performance |
| Timeline |
| Ceragon Networks |
| United States Basketball |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Ceragon Networks and United States Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ceragon Networks and United States
The main advantage of trading using opposite Ceragon Networks and United States positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ceragon Networks position performs unexpectedly, United States 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 United States will offset losses from the drop in United States' long position.| Ceragon Networks vs. Cambium Networks Corp | Ceragon Networks vs. KVH Industries | Ceragon Networks vs. Knowles Cor | Ceragon Networks vs. AudioCodes |
| United States vs. A1 Group | United States vs. Roth CH Acquisition | United States vs. Awaysis Capital | United States vs. Starguide Group |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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