Correlation Between Ceragon Networks and Bonava AB
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By analyzing existing cross correlation between Ceragon Networks and Bonava AB, you can compare the effects of market volatilities on Ceragon Networks and Bonava AB 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 Bonava AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ceragon Networks and Bonava AB.
Diversification Opportunities for Ceragon Networks and Bonava AB
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ceragon and Bonava is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Ceragon Networks and Bonava AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bonava AB 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 Bonava AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bonava AB has no effect on the direction of Ceragon Networks i.e., Ceragon Networks and Bonava AB go up and down completely randomly.
Pair Corralation between Ceragon Networks and Bonava AB
Given the investment horizon of 90 days Ceragon Networks is expected to generate 1.61 times more return on investment than Bonava AB. However, Ceragon Networks is 1.61 times more volatile than Bonava AB. It trades about 0.18 of its potential returns per unit of risk. Bonava AB is currently generating about 0.01 per unit of risk. If you would invest 289.00 in Ceragon Networks on September 5, 2024 and sell it today you would earn a total of 150.00 from holding Ceragon Networks or generate 51.9% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 98.46% |
Values | Daily Returns |
Ceragon Networks vs. Bonava AB
Performance |
Timeline |
Ceragon Networks |
Bonava AB |
Ceragon Networks and Bonava AB Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ceragon Networks and Bonava AB
The main advantage of trading using opposite Ceragon Networks and Bonava AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ceragon Networks position performs unexpectedly, Bonava AB 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 Bonava AB will offset losses from the drop in Bonava AB's long position.Ceragon Networks vs. Cambium Networks Corp | Ceragon Networks vs. KVH Industries | Ceragon Networks vs. Knowles Cor | Ceragon Networks vs. AudioCodes |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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