Correlation Between Ceragon Networks and Bilibili
Can any of the company-specific risk be diversified away by investing in both Ceragon Networks and Bilibili 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 Bilibili into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ceragon Networks and Bilibili, you can compare the effects of market volatilities on Ceragon Networks and Bilibili 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 Bilibili. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ceragon Networks and Bilibili.
Diversification Opportunities for Ceragon Networks and Bilibili
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ceragon and Bilibili is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Ceragon Networks and Bilibili in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bilibili 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 Bilibili. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bilibili has no effect on the direction of Ceragon Networks i.e., Ceragon Networks and Bilibili go up and down completely randomly.
Pair Corralation between Ceragon Networks and Bilibili
Given the investment horizon of 90 days Ceragon Networks is expected to under-perform the Bilibili. In addition to that, Ceragon Networks is 1.67 times more volatile than Bilibili. It trades about -0.09 of its total potential returns per unit of risk. Bilibili is currently generating about 0.03 per unit of volatility. If you would invest 1,890 in Bilibili on December 1, 2024 and sell it today you would earn a total of 60.00 from holding Bilibili or generate 3.17% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Ceragon Networks vs. Bilibili
Performance |
Timeline |
Ceragon Networks |
Bilibili |
Ceragon Networks and Bilibili Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ceragon Networks and Bilibili
The main advantage of trading using opposite Ceragon Networks and Bilibili positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ceragon Networks position performs unexpectedly, Bilibili 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 Bilibili will offset losses from the drop in Bilibili's long position.Ceragon Networks vs. Cambium Networks Corp | Ceragon Networks vs. KVH Industries | Ceragon Networks vs. Knowles Cor | Ceragon Networks vs. AudioCodes |
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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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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