Correlation Between Ceragon Networks and Bangkok Chain

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

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

Diversification Opportunities for Ceragon Networks and Bangkok Chain

-0.82

Correlation Coefficient

Ceragon Networks  Bangkok Chain

Pay attention - limited upside

The 3 months correlation between Ceragon and Bangkok is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Ceragon Networks and Bangkok Chain Hospital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bangkok Chain Hospital 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 Bangkok Chain. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bangkok Chain Hospital has no effect on the direction of Ceragon Networks i.e., Ceragon Networks and Bangkok Chain go up and down completely randomly.

Pair Corralation between Ceragon Networks and Bangkok Chain

Given the investment horizon of 90 days Ceragon Networks is expected to generate 17.04 times less return on investment than Bangkok Chain. But when comparing it to its historical volatility, Ceragon Networks is 20.65 times less risky than Bangkok Chain. It trades about 0.07 of its potential returns per unit of risk. Bangkok Chain Hospital is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  2,100  in Bangkok Chain Hospital on October 31, 2024 and sell it today you would lose (620.00) from holding Bangkok Chain Hospital or give up 29.52% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	96.76%
Values	Daily Returns

Ceragon Networks  vs.  Bangkok Chain Hospital

Ceragon Networks

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Ceragon Networks are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating basic indicators, Ceragon Networks unveiled solid returns over the last few months and may actually be approaching a breakup point.

Bangkok Chain Hospital

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Bangkok Chain Hospital has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's fundamental drivers 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.

Pair Trading with Ceragon Networks and Bangkok Chain

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

The idea behind Ceragon Networks and Bangkok Chain Hospital 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.