Correlation Between Ceragon Networks and EMERCOIN
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By analyzing existing cross correlation between Ceragon Networks and EMERCOIN, you can compare the effects of market volatilities on Ceragon Networks and EMERCOIN 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 EMERCOIN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ceragon Networks and EMERCOIN.
Diversification Opportunities for Ceragon Networks and EMERCOIN
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Ceragon and EMERCOIN is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Ceragon Networks and EMERCOIN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EMERCOIN 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 EMERCOIN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EMERCOIN has no effect on the direction of Ceragon Networks i.e., Ceragon Networks and EMERCOIN go up and down completely randomly.
Pair Corralation between Ceragon Networks and EMERCOIN
Given the investment horizon of 90 days Ceragon Networks is expected to generate 6.08 times less return on investment than EMERCOIN. But when comparing it to its historical volatility, Ceragon Networks is 8.81 times less risky than EMERCOIN. It trades about 0.2 of its potential returns per unit of risk. EMERCOIN is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 0.67 in EMERCOIN on September 12, 2024 and sell it today you would earn a total of 0.01 from holding EMERCOIN or generate 1.79% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 98.44% |
Values | Daily Returns |
Ceragon Networks vs. EMERCOIN
Performance |
Timeline |
Ceragon Networks |
EMERCOIN |
Ceragon Networks and EMERCOIN Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ceragon Networks and EMERCOIN
The main advantage of trading using opposite Ceragon Networks and EMERCOIN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ceragon Networks position performs unexpectedly, EMERCOIN 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 EMERCOIN will offset losses from the drop in EMERCOIN'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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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