Correlation Between Ceragon Networks and FolioBeyond Rising

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

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

Diversification Opportunities for Ceragon Networks and FolioBeyond Rising

0.09

Correlation Coefficient

Ceragon Networks  FolioBeyond Rising

Significant diversification

The 3 months correlation between Ceragon and FolioBeyond is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Ceragon Networks and FolioBeyond Rising Rates in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FolioBeyond Rising Rates 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 FolioBeyond Rising. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FolioBeyond Rising Rates has no effect on the direction of Ceragon Networks i.e., Ceragon Networks and FolioBeyond Rising go up and down completely randomly.

Pair Corralation between Ceragon Networks and FolioBeyond Rising

Given the investment horizon of 90 days Ceragon Networks is expected to under-perform the FolioBeyond Rising. In addition to that, Ceragon Networks is 14.33 times more volatile than FolioBeyond Rising Rates. It trades about -0.36 of its total potential returns per unit of risk. FolioBeyond Rising Rates is currently generating about -0.11 per unit of volatility. If you would invest  3,656  in FolioBeyond Rising Rates on December 2, 2024 and sell it today you would lose (37.00) from holding FolioBeyond Rising Rates or give up 1.01% of portfolio value over 90 days.

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

Ceragon Networks  vs.  FolioBeyond Rising Rates

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.

FolioBeyond Rising Rates

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in FolioBeyond Rising Rates are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable basic indicators, FolioBeyond Rising is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Ceragon Networks and FolioBeyond Rising

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

The idea behind Ceragon Networks and FolioBeyond Rising Rates 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.

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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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.