Correlation Between Ceragon Networks and DAX Midcap
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By analyzing existing cross correlation between Ceragon Networks and DAX Midcap, you can compare the effects of market volatilities on Ceragon Networks and DAX Midcap 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 DAX Midcap. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ceragon Networks and DAX Midcap.
Diversification Opportunities for Ceragon Networks and DAX Midcap
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ceragon and DAX is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Ceragon Networks and DAX Midcap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DAX Midcap 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 DAX Midcap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DAX Midcap has no effect on the direction of Ceragon Networks i.e., Ceragon Networks and DAX Midcap go up and down completely randomly.
Pair Corralation between Ceragon Networks and DAX Midcap
Given the investment horizon of 90 days Ceragon Networks is expected to generate 4.72 times more return on investment than DAX Midcap. However, Ceragon Networks is 4.72 times more volatile than DAX Midcap. It trades about 0.2 of its potential returns per unit of risk. DAX Midcap is currently generating about 0.13 per unit of risk. If you would invest 277.00 in Ceragon Networks on September 6, 2024 and sell it today you would earn a total of 160.00 from holding Ceragon Networks or generate 57.76% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Ceragon Networks vs. DAX Midcap
Performance |
Timeline |
Ceragon Networks and DAX Midcap Volatility Contrast
Predicted Return Density |
Returns |
Ceragon Networks
Pair trading matchups for Ceragon Networks
DAX Midcap
Pair trading matchups for DAX Midcap
Pair Trading with Ceragon Networks and DAX Midcap
The main advantage of trading using opposite Ceragon Networks and DAX Midcap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ceragon Networks position performs unexpectedly, DAX Midcap 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 DAX Midcap will offset losses from the drop in DAX Midcap'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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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