Correlation Between Ceragon Networks and Meta Platforms
Can any of the company-specific risk be diversified away by investing in both Ceragon Networks and Meta Platforms 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 Meta Platforms into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ceragon Networks and Meta Platforms, you can compare the effects of market volatilities on Ceragon Networks and Meta Platforms 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 Meta Platforms. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ceragon Networks and Meta Platforms.
Diversification Opportunities for Ceragon Networks and Meta Platforms
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Ceragon and Meta is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Ceragon Networks and Meta Platforms in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meta Platforms 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 Meta Platforms. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Meta Platforms has no effect on the direction of Ceragon Networks i.e., Ceragon Networks and Meta Platforms go up and down completely randomly.
Pair Corralation between Ceragon Networks and Meta Platforms
If you would invest 202.00 in Ceragon Networks on January 24, 2024 and sell it today you would earn a total of 74.00 from holding Ceragon Networks or generate 36.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 0.54% |
| Values | Daily Returns |
Ceragon Networks vs. Meta Platforms
Performance |
| Timeline |
| Ceragon Networks |
| Meta Platforms |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Ceragon Networks and Meta Platforms Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ceragon Networks and Meta Platforms
The main advantage of trading using opposite Ceragon Networks and Meta Platforms positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ceragon Networks position performs unexpectedly, Meta Platforms 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 Meta Platforms will offset losses from the drop in Meta Platforms' long position.| Ceragon Networks vs. Desktop Metal | Ceragon Networks vs. Fabrinet | Ceragon Networks vs. Kimball Electronics | Ceragon Networks vs. Knowles Cor |
| Meta Platforms vs. Meta Platforms | Meta Platforms vs. Alphabet Inc Class A | Meta Platforms vs. Twilio Inc | Meta Platforms vs. Snap Inc |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |