Correlation Between Ceragon Networks and Varta AG
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By analyzing existing cross correlation between Ceragon Networks and Varta AG, you can compare the effects of market volatilities on Ceragon Networks and Varta AG 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 Varta AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ceragon Networks and Varta AG.
Diversification Opportunities for Ceragon Networks and Varta AG
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ceragon and Varta is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Ceragon Networks and Varta AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Varta AG 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 Varta AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Varta AG has no effect on the direction of Ceragon Networks i.e., Ceragon Networks and Varta AG go up and down completely randomly.
Pair Corralation between Ceragon Networks and Varta AG
Given the investment horizon of 90 days Ceragon Networks is expected to generate 0.35 times more return on investment than Varta AG. However, Ceragon Networks is 2.88 times less risky than Varta AG. It trades about 0.07 of its potential returns per unit of risk. Varta AG is currently generating about -0.02 per unit of risk. If you would invest 192.00 in Ceragon Networks on September 5, 2024 and sell it today you would earn a total of 247.00 from holding Ceragon Networks or generate 128.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.02% |
| Values | Daily Returns |
Ceragon Networks vs. Varta AG
Performance |
| Timeline |
| Ceragon Networks |
| Varta AG |
Ceragon Networks and Varta AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ceragon Networks and Varta AG
The main advantage of trading using opposite Ceragon Networks and Varta AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ceragon Networks position performs unexpectedly, Varta AG 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 Varta AG will offset losses from the drop in Varta AG's long position.| Ceragon Networks vs. Cambium Networks Corp | Ceragon Networks vs. KVH Industries | Ceragon Networks vs. Knowles Cor | Ceragon Networks vs. AudioCodes |
| Varta AG vs. METTLER TOLEDO INTL | Varta AG vs. METTLER TOLEDO INTL | Varta AG vs. Mitie Group PLC | Varta AG vs. LODESTAR MIN |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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