Correlation Between One Stop and Cambium Networks
Can any of the company-specific risk be diversified away by investing in both One Stop 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 One Stop and Cambium Networks into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between One Stop Systems and Cambium Networks Corp, you can compare the effects of market volatilities on One Stop 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 One Stop with a short position of Cambium Networks. Check out your portfolio center. Please also check ongoing floating volatility patterns of One Stop and Cambium Networks.
Diversification Opportunities for One Stop and Cambium Networks
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between One and Cambium is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding One Stop Systems 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 One Stop 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 One Stop Systems 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 One Stop i.e., One Stop and Cambium Networks go up and down completely randomly.
Pair Corralation between One Stop and Cambium Networks
Considering the 90-day investment horizon One Stop is expected to generate 19.32 times less return on investment than Cambium Networks. But when comparing it to its historical volatility, One Stop Systems is 1.05 times less risky than Cambium Networks. It trades about 0.02 of its potential returns per unit of risk. Cambium Networks Corp is currently generating about 0.38 of returns per unit of risk over similar time horizon. If you would invest 78.00 in Cambium Networks Corp on November 2, 2024 and sell it today you would earn a total of 42.00 from holding Cambium Networks Corp or generate 53.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
One Stop Systems vs. Cambium Networks Corp
Performance |
| Timeline |
| One Stop Systems |
| Cambium Networks Corp |
One Stop and Cambium Networks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with One Stop and Cambium Networks
The main advantage of trading using opposite One Stop and Cambium Networks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if One Stop 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.| One Stop vs. Canon Inc | One Stop vs. Artificial Intelligence Technology | One Stop vs. Quantum Computing | One Stop vs. Ageagle Aerial Systems |
| 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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