Correlation Between Ceragon Networks and BMO SIA
Can any of the company-specific risk be diversified away by investing in both Ceragon Networks and BMO SIA 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 BMO SIA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ceragon Networks and BMO SIA Focused, you can compare the effects of market volatilities on Ceragon Networks and BMO SIA 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 BMO SIA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ceragon Networks and BMO SIA.
Diversification Opportunities for Ceragon Networks and BMO SIA
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ceragon and BMO is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Ceragon Networks and BMO SIA Focused in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BMO SIA Focused 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 BMO SIA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BMO SIA Focused has no effect on the direction of Ceragon Networks i.e., Ceragon Networks and BMO SIA go up and down completely randomly.
Pair Corralation between Ceragon Networks and BMO SIA
Given the investment horizon of 90 days Ceragon Networks is expected to generate 11.32 times more return on investment than BMO SIA. However, Ceragon Networks is 11.32 times more volatile than BMO SIA Focused. It trades about 0.45 of its potential returns per unit of risk. BMO SIA Focused is currently generating about 0.21 per unit of risk. If you would invest 253.00 in Ceragon Networks on September 12, 2024 and sell it today you would earn a total of 197.00 from holding Ceragon Networks or generate 77.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Ceragon Networks vs. BMO SIA Focused
Performance |
| Timeline |
| Ceragon Networks |
| BMO SIA Focused |
Ceragon Networks and BMO SIA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ceragon Networks and BMO SIA
The main advantage of trading using opposite Ceragon Networks and BMO SIA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ceragon Networks position performs unexpectedly, BMO SIA 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 BMO SIA will offset losses from the drop in BMO SIA's long position.| Ceragon Networks vs. Cambium Networks Corp | Ceragon Networks vs. KVH Industries | Ceragon Networks vs. Knowles Cor | Ceragon Networks vs. AudioCodes |
| BMO SIA vs. BMO SIA Focused | BMO SIA vs. BMO MSCI USA | BMO SIA vs. BMO MSCI Canada | BMO SIA vs. BMO Low Volatility |
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.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |