Correlation Between Ceragon Networks and Zhongsheng Group
Can any of the company-specific risk be diversified away by investing in both Ceragon Networks and Zhongsheng Group 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 Zhongsheng Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ceragon Networks and Zhongsheng Group Holdings, you can compare the effects of market volatilities on Ceragon Networks and Zhongsheng Group 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 Zhongsheng Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ceragon Networks and Zhongsheng Group.
Diversification Opportunities for Ceragon Networks and Zhongsheng Group
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ceragon and Zhongsheng is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ceragon Networks and Zhongsheng Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongsheng Group Holdings 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 Zhongsheng Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhongsheng Group Holdings has no effect on the direction of Ceragon Networks i.e., Ceragon Networks and Zhongsheng Group go up and down completely randomly.
Pair Corralation between Ceragon Networks and Zhongsheng Group
Given the investment horizon of 90 days Ceragon Networks is expected to generate 1.1 times less return on investment than Zhongsheng Group. But when comparing it to its historical volatility, Ceragon Networks is 1.11 times less risky than Zhongsheng Group. It trades about 0.09 of its potential returns per unit of risk. Zhongsheng Group Holdings is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 169.00 in Zhongsheng Group Holdings on September 3, 2024 and sell it today you would earn a total of 87.00 from holding Zhongsheng Group Holdings or generate 51.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.32% |
| Values | Daily Returns |
Ceragon Networks vs. Zhongsheng Group Holdings
Performance |
| Timeline |
| Ceragon Networks |
| Zhongsheng Group Holdings |
Ceragon Networks and Zhongsheng Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ceragon Networks and Zhongsheng Group
The main advantage of trading using opposite Ceragon Networks and Zhongsheng Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ceragon Networks position performs unexpectedly, Zhongsheng Group 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 Zhongsheng Group will offset losses from the drop in Zhongsheng Group's long position.| Ceragon Networks vs. Cambium Networks Corp | Ceragon Networks vs. KVH Industries | Ceragon Networks vs. Knowles Cor | Ceragon Networks vs. AudioCodes |
| Zhongsheng Group vs. SunCar Technology Group | Zhongsheng Group vs. Jiuzi Holdings | Zhongsheng Group vs. Vroom Inc | Zhongsheng Group vs. Carvana Co |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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