Correlation Between Ceragon Networks and Yellow Cake
Can any of the company-specific risk be diversified away by investing in both Ceragon Networks and Yellow Cake 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 Yellow Cake into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ceragon Networks and Yellow Cake plc, you can compare the effects of market volatilities on Ceragon Networks and Yellow Cake 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 Yellow Cake. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ceragon Networks and Yellow Cake.
Diversification Opportunities for Ceragon Networks and Yellow Cake
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ceragon and Yellow is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Ceragon Networks and Yellow Cake plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yellow Cake plc 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 Yellow Cake. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yellow Cake plc has no effect on the direction of Ceragon Networks i.e., Ceragon Networks and Yellow Cake go up and down completely randomly.
Pair Corralation between Ceragon Networks and Yellow Cake
Given the investment horizon of 90 days Ceragon Networks is expected to generate 1.07 times more return on investment than Yellow Cake. However, Ceragon Networks is 1.07 times more volatile than Yellow Cake plc. It trades about 0.49 of its potential returns per unit of risk. Yellow Cake plc is currently generating about 0.01 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. Yellow Cake plc
Performance |
| Timeline |
| Ceragon Networks |
| Yellow Cake plc |
Ceragon Networks and Yellow Cake Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ceragon Networks and Yellow Cake
The main advantage of trading using opposite Ceragon Networks and Yellow Cake positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ceragon Networks position performs unexpectedly, Yellow Cake 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 Yellow Cake will offset losses from the drop in Yellow Cake's long position.| Ceragon Networks vs. Cambium Networks Corp | Ceragon Networks vs. KVH Industries | Ceragon Networks vs. Knowles Cor | Ceragon Networks vs. AudioCodes |
| Yellow Cake vs. Elevate Uranium | Yellow Cake vs. Sprott Physical Uranium | Yellow Cake vs. Energy Fuels | Yellow Cake vs. ValOre Metals Corp |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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