Correlation Between Gilat Satellite and Cambium Networks
Can any of the company-specific risk be diversified away by investing in both Gilat Satellite and Cambium Networks 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 Gilat Satellite and Cambium Networks into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gilat Satellite Networks and Cambium Networks Corp, you can compare the effects of market volatilities on Gilat Satellite and Cambium Networks 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 Gilat Satellite with a short position of Cambium Networks. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gilat Satellite and Cambium Networks.
Diversification Opportunities for Gilat Satellite and Cambium Networks
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Gilat and Cambium is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Gilat Satellite Networks and Cambium Networks Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cambium Networks Corp and Gilat Satellite 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 Gilat Satellite Networks are associated (or correlated) with Cambium Networks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cambium Networks Corp has no effect on the direction of Gilat Satellite i.e., Gilat Satellite and Cambium Networks go up and down completely randomly.
Pair Corralation between Gilat Satellite and Cambium Networks
Given the investment horizon of 90 days Gilat Satellite Networks is expected to generate 0.52 times more return on investment than Cambium Networks. However, Gilat Satellite Networks is 1.92 times less risky than Cambium Networks. It trades about 0.01 of its potential returns per unit of risk. Cambium Networks Corp is currently generating about -0.1 per unit of risk. If you would invest 563.00 in Gilat Satellite Networks on August 28, 2024 and sell it today you would lose (8.00) from holding Gilat Satellite Networks or give up 1.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gilat Satellite Networks vs. Cambium Networks Corp
Performance |
| Timeline |
| Gilat Satellite Networks |
| Cambium Networks Corp |
Gilat Satellite and Cambium Networks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gilat Satellite and Cambium Networks
The main advantage of trading using opposite Gilat Satellite and Cambium Networks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gilat Satellite position performs unexpectedly, Cambium Networks 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 Cambium Networks will offset losses from the drop in Cambium Networks' long position.| Gilat Satellite vs. ADTRAN Inc | Gilat Satellite vs. Mynaric AG ADR | Gilat Satellite vs. KVH Industries | Gilat Satellite vs. Telesat Corp |
| Cambium Networks vs. Aviat Networks | Cambium Networks vs. Rimini Street | Cambium Networks vs. Airgain | Cambium Networks vs. Calix 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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