Correlation Between Ceragon Networks and Invesco Exchange

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

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

Diversification Opportunities for Ceragon Networks and Invesco Exchange

-0.84

Correlation Coefficient

Ceragon Networks  Invesco Exchange

Pay attention - limited upside

The 3 months correlation between Ceragon and Invesco is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Ceragon Networks and Invesco Exchange Traded Self I in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco Exchange Traded 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 Invesco Exchange. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco Exchange Traded has no effect on the direction of Ceragon Networks i.e., Ceragon Networks and Invesco Exchange go up and down completely randomly.

Pair Corralation between Ceragon Networks and Invesco Exchange

Given the investment horizon of 90 days Ceragon Networks is expected to under-perform the Invesco Exchange. In addition to that, Ceragon Networks is 17.23 times more volatile than Invesco Exchange Traded Self Indexed. It trades about -0.17 of its total potential returns per unit of risk. Invesco Exchange Traded Self Indexed is currently generating about 0.08 per unit of volatility. If you would invest  1,992  in Invesco Exchange Traded Self Indexed on December 29, 2024 and sell it today you would earn a total of  30.00  from holding Invesco Exchange Traded Self Indexed or generate 1.51% return on investment over 90 days.

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

Ceragon Networks  vs.  Invesco Exchange Traded Self I

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.

Invesco Exchange Traded

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Invesco Exchange Traded Self Indexed are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable fundamental indicators, Invesco Exchange is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Ceragon Networks and Invesco Exchange

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

The idea behind Ceragon Networks and Invesco Exchange Traded Self Indexed 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.

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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.