Correlation Between Ceragon Networks and Yokohama Rubber
Can any of the company-specific risk be diversified away by investing in both Ceragon Networks and Yokohama Rubber 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 Yokohama Rubber into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ceragon Networks and The Yokohama Rubber, you can compare the effects of market volatilities on Ceragon Networks and Yokohama Rubber 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 Yokohama Rubber. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ceragon Networks and Yokohama Rubber.
Diversification Opportunities for Ceragon Networks and Yokohama Rubber
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ceragon and Yokohama is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Ceragon Networks and The Yokohama Rubber in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yokohama Rubber 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 Yokohama Rubber. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yokohama Rubber has no effect on the direction of Ceragon Networks i.e., Ceragon Networks and Yokohama Rubber go up and down completely randomly.
Pair Corralation between Ceragon Networks and Yokohama Rubber
If you would invest 242.00 in Ceragon Networks on September 4, 2024 and sell it today you would earn a total of 174.00 from holding Ceragon Networks or generate 71.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Ceragon Networks vs. The Yokohama Rubber
Performance |
| Timeline |
| Ceragon Networks |
| Yokohama Rubber |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Ceragon Networks and Yokohama Rubber Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ceragon Networks and Yokohama Rubber
The main advantage of trading using opposite Ceragon Networks and Yokohama Rubber positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ceragon Networks position performs unexpectedly, Yokohama Rubber 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 Yokohama Rubber will offset losses from the drop in Yokohama Rubber's long position.| Ceragon Networks vs. Cambium Networks Corp | Ceragon Networks vs. KVH Industries | Ceragon Networks vs. Knowles Cor | Ceragon Networks vs. AudioCodes |
| Yokohama Rubber vs. BorgWarner | Yokohama Rubber vs. American Axle Manufacturing | Yokohama Rubber vs. Magna International | Yokohama Rubber vs. Dana Inc |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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