Correlation Between Ceragon Networks and PTT OIL
Can any of the company-specific risk be diversified away by investing in both Ceragon Networks and PTT OIL 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 PTT OIL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ceragon Networks and PTT OIL RETAIL, you can compare the effects of market volatilities on Ceragon Networks and PTT OIL 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 PTT OIL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ceragon Networks and PTT OIL.
Diversification Opportunities for Ceragon Networks and PTT OIL
-0.94 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ceragon and PTT is -0.94. Overlapping area represents the amount of risk that can be diversified away by holding Ceragon Networks and PTT OIL RETAIL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PTT OIL RETAIL 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 PTT OIL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PTT OIL RETAIL has no effect on the direction of Ceragon Networks i.e., Ceragon Networks and PTT OIL go up and down completely randomly.
Pair Corralation between Ceragon Networks and PTT OIL
Given the investment horizon of 90 days Ceragon Networks is expected to generate 1.07 times more return on investment than PTT OIL. However, Ceragon Networks is 1.07 times more volatile than PTT OIL RETAIL. It trades about 0.24 of its potential returns per unit of risk. PTT OIL RETAIL is currently generating about -0.14 per unit of risk. If you would invest 271.00 in Ceragon Networks on September 13, 2024 and sell it today you would earn a total of 220.00 from holding Ceragon Networks or generate 81.18% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 95.24% |
Values | Daily Returns |
Ceragon Networks vs. PTT OIL RETAIL
Performance |
Timeline |
Ceragon Networks |
PTT OIL RETAIL |
Ceragon Networks and PTT OIL Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ceragon Networks and PTT OIL
The main advantage of trading using opposite Ceragon Networks and PTT OIL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ceragon Networks position performs unexpectedly, PTT OIL 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 PTT OIL will offset losses from the drop in PTT OIL's long position.Ceragon Networks vs. Cambium Networks Corp | Ceragon Networks vs. KVH Industries | Ceragon Networks vs. Knowles Cor | Ceragon Networks vs. AudioCodes |
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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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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