Correlation Between Cambium Networks and Paylocity Holdng

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

By analyzing existing cross correlation between Cambium Networks Corp and Paylocity Holdng, you can compare the effects of market volatilities on Cambium Networks and Paylocity Holdng 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 Cambium Networks with a short position of Paylocity Holdng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cambium Networks and Paylocity Holdng.

Diversification Opportunities for Cambium Networks and Paylocity Holdng

-0.05

Correlation Coefficient

Cambium Networks  Paylocity Holdng

Good diversification

The 3 months correlation between Cambium and Paylocity is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Cambium Networks Corp and Paylocity Holdng in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Paylocity Holdng and Cambium 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 Cambium Networks Corp are associated (or correlated) with Paylocity Holdng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Paylocity Holdng has no effect on the direction of Cambium Networks i.e., Cambium Networks and Paylocity Holdng go up and down completely randomly.

Pair Corralation between Cambium Networks and Paylocity Holdng

Given the investment horizon of 90 days Cambium Networks Corp is expected to generate 6.56 times more return on investment than Paylocity Holdng. However, Cambium Networks is 6.56 times more volatile than Paylocity Holdng. It trades about 0.15 of its potential returns per unit of risk. Paylocity Holdng is currently generating about 0.0 per unit of risk. If you would invest  44.00  in Cambium Networks Corp on May 6, 2025 and sell it today you would earn a total of  44.25  from holding Cambium Networks Corp or generate 100.57% return on investment over 90 days.

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

Cambium Networks Corp  vs.  Paylocity Holdng

Cambium Networks Corp

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Cambium Networks Corp are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of very abnormal fundamental drivers, Cambium Networks displayed solid returns over the last few months and may actually be approaching a breakup point.

Paylocity Holdng

Risk-Adjusted Performance

Very Weak

Over the last 90 days Paylocity Holdng has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Paylocity Holdng is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Cambium Networks and Paylocity Holdng

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

The idea behind Cambium Networks Corp and Paylocity Holdng 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.