Correlation Between Ceragon Networks and Delek Automotive
Can any of the company-specific risk be diversified away by investing in both Ceragon Networks and Delek Automotive 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 Delek Automotive into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ceragon Networks and Delek Automotive Systems, you can compare the effects of market volatilities on Ceragon Networks and Delek Automotive 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 Delek Automotive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ceragon Networks and Delek Automotive.
Diversification Opportunities for Ceragon Networks and Delek Automotive
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ceragon and Delek is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Ceragon Networks and Delek Automotive Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Delek Automotive Systems 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 Delek Automotive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Delek Automotive Systems has no effect on the direction of Ceragon Networks i.e., Ceragon Networks and Delek Automotive go up and down completely randomly.
Pair Corralation between Ceragon Networks and Delek Automotive
Given the investment horizon of 90 days Ceragon Networks is expected to generate 0.9 times more return on investment than Delek Automotive. However, Ceragon Networks is 1.11 times less risky than Delek Automotive. It trades about 0.04 of its potential returns per unit of risk. Delek Automotive Systems is currently generating about -0.03 per unit of risk. If you would invest 189.00 in Ceragon Networks on January 26, 2024 and sell it today you would earn a total of 90.00 from holding Ceragon Networks or generate 47.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 78.95% |
| Values | Daily Returns |
Ceragon Networks vs. Delek Automotive Systems
Performance |
| Timeline |
| Ceragon Networks |
| Delek Automotive Systems |
Ceragon Networks and Delek Automotive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ceragon Networks and Delek Automotive
The main advantage of trading using opposite Ceragon Networks and Delek Automotive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ceragon Networks position performs unexpectedly, Delek Automotive 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 Delek Automotive will offset losses from the drop in Delek Automotive's long position.| Ceragon Networks vs. Aviat Networks | Ceragon Networks vs. Silicom | Ceragon Networks vs. Akoustis Technologies | Ceragon Networks vs. Gilat Satellite Networks |
| Delek Automotive vs. Clal Insurance Enterprises | Delek Automotive vs. Israel Discount Bank | Delek Automotive vs. Bezeq Israeli Telecommunication | Delek Automotive vs. Alony Hetz Properties |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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