Correlation Between Zebra Technologies and Cambium Networks

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Can any of the company-specific risk be diversified away by investing in both Zebra Technologies 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 Zebra Technologies and Cambium Networks into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Zebra Technologies and Cambium Networks Corp, you can compare the effects of market volatilities on Zebra Technologies 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 Zebra Technologies with a short position of Cambium Networks. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zebra Technologies and Cambium Networks.

Diversification Opportunities for Zebra Technologies and Cambium Networks

ZebraCambiumDiversified AwayZebraCambiumDiversified Away100%
-0.26
  Correlation Coefficient

Very good diversification

The 3 months correlation between Zebra and Cambium is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Zebra Technologies 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 Zebra Technologies 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 Zebra Technologies 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 Zebra Technologies i.e., Zebra Technologies and Cambium Networks go up and down completely randomly.

Pair Corralation between Zebra Technologies and Cambium Networks

Given the investment horizon of 90 days Zebra Technologies is expected to under-perform the Cambium Networks. But the stock apears to be less risky and, when comparing its historical volatility, Zebra Technologies is 2.51 times less risky than Cambium Networks. The stock trades about -0.5 of its potential returns per unit of risk. The Cambium Networks Corp is currently generating about -0.15 of returns per unit of risk over similar time horizon. If you would invest  131.00  in Cambium Networks Corp on November 27, 2024 and sell it today you would lose (26.00) from holding Cambium Networks Corp or give up 19.85% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Zebra Technologies  vs.  Cambium Networks Corp

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -40-30-20-100102030
JavaScript chart by amCharts 3.21.15ZBRA CMBM
       Timeline  
Zebra Technologies 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Zebra Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in March 2025. The current disturbance may also be a sign of long term up-swing for the company investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb320340360380400420
Cambium Networks Corp 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Cambium Networks Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy fundamental drivers, Cambium Networks is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb0.811.21.41.6

Zebra Technologies and Cambium Networks Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-3.31-2.48-1.65-0.820.01170.71.412.112.81 0.020.040.060.080.10
JavaScript chart by amCharts 3.21.15ZBRA CMBM
       Returns  

Pair Trading with Zebra Technologies and Cambium Networks

The main advantage of trading using opposite Zebra Technologies and Cambium Networks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zebra Technologies 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.
The idea behind Zebra Technologies and Cambium Networks Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.

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