Correlation Between Ceragon Networks and Cohen Steers
Can any of the company-specific risk be diversified away by investing in both Ceragon Networks and Cohen Steers 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 Cohen Steers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ceragon Networks and Cohen Steers Real, you can compare the effects of market volatilities on Ceragon Networks and Cohen Steers 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 Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ceragon Networks and Cohen Steers.
Diversification Opportunities for Ceragon Networks and Cohen Steers
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ceragon and Cohen is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Ceragon Networks and Cohen Steers Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Steers Real 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 Cohen Steers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cohen Steers Real has no effect on the direction of Ceragon Networks i.e., Ceragon Networks and Cohen Steers go up and down completely randomly.
Pair Corralation between Ceragon Networks and Cohen Steers
Given the investment horizon of 90 days Ceragon Networks is expected to under-perform the Cohen Steers. In addition to that, Ceragon Networks is 14.86 times more volatile than Cohen Steers Real. It trades about -0.36 of its total potential returns per unit of risk. Cohen Steers Real is currently generating about 0.13 per unit of volatility. If you would invest 1,021 in Cohen Steers Real on December 2, 2024 and sell it today you would earn a total of 11.00 from holding Cohen Steers Real or generate 1.08% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Ceragon Networks vs. Cohen Steers Real
Performance |
Timeline |
Ceragon Networks |
Cohen Steers Real |
Ceragon Networks and Cohen Steers Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ceragon Networks and Cohen Steers
The main advantage of trading using opposite Ceragon Networks and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ceragon Networks position performs unexpectedly, Cohen Steers 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 Cohen Steers will offset losses from the drop in Cohen Steers' 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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