Correlation Between Ceragon Networks and Thor Explorations

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

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

Diversification Opportunities for Ceragon Networks and Thor Explorations

-0.7

Correlation Coefficient

Ceragon Networks  Thor Explorations

Excellent diversification

The 3 months correlation between Ceragon and Thor is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Ceragon Networks and Thor Explorations in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thor Explorations 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 Thor Explorations. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thor Explorations has no effect on the direction of Ceragon Networks i.e., Ceragon Networks and Thor Explorations go up and down completely randomly.

Pair Corralation between Ceragon Networks and Thor Explorations

Given the investment horizon of 90 days Ceragon Networks is expected to under-perform the Thor Explorations. In addition to that, Ceragon Networks is 1.6 times more volatile than Thor Explorations. It trades about -0.18 of its total potential returns per unit of risk. Thor Explorations is currently generating about 0.22 per unit of volatility. If you would invest  31.00  in Thor Explorations on December 28, 2024 and sell it today you would earn a total of  16.00  from holding Thor Explorations or generate 51.61% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	96.77%
Values	Daily Returns

Ceragon Networks  vs.  Thor Explorations

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.

Thor Explorations

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Thor Explorations are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Thor Explorations showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Ceragon Networks and Thor Explorations

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

The idea behind Ceragon Networks and Thor Explorations 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.