Correlation Between Ceragon Networks and Silver X

Can any of the company-specific risk be diversified away by investing in both Ceragon Networks and Silver X 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 Silver X into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Ceragon Networks and Silver X Mining, you can compare the effects of market volatilities on Ceragon Networks and Silver X 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 Silver X. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ceragon Networks and Silver X.

Diversification Opportunities for Ceragon Networks and Silver X

0.69

Correlation Coefficient

Ceragon Networks  Silver X

Poor diversification

The 3 months correlation between Ceragon and Silver is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Ceragon Networks and Silver X Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silver X Mining 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 Silver X. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silver X Mining has no effect on the direction of Ceragon Networks i.e., Ceragon Networks and Silver X go up and down completely randomly.

Pair Corralation between Ceragon Networks and Silver X

Given the investment horizon of 90 days Ceragon Networks is expected to under-perform the Silver X. But the stock apears to be less risky and, when comparing its historical volatility, Ceragon Networks is 1.09 times less risky than Silver X. The stock trades about -0.17 of its potential returns per unit of risk. The Silver X Mining is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  13.00  in Silver X Mining on December 29, 2024 and sell it today you would lose (1.00) from holding Silver X Mining or give up 7.69% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Ceragon Networks  vs.  Silver X Mining

Ceragon Networks

Risk-Adjusted Performance

Very Weak

Over the last 90 days Ceragon Networks has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Silver X Mining

Risk-Adjusted Performance

Very Weak

Over the last 90 days Silver X Mining has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Silver X is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Ceragon Networks and Silver X

The main advantage of trading using opposite Ceragon Networks and Silver X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ceragon Networks position performs unexpectedly, Silver X 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 Silver X will offset losses from the drop in Silver X's long position.

The idea behind Ceragon Networks and Silver X Mining 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.