Correlation Between Ceragon Networks and ScanTech

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Can any of the company-specific risk be diversified away by investing in both Ceragon Networks and ScanTech 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 ScanTech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ceragon Networks and ScanTech AI Systems, you can compare the effects of market volatilities on Ceragon Networks and ScanTech 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 ScanTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ceragon Networks and ScanTech.

Diversification Opportunities for Ceragon Networks and ScanTech

-0.75
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Ceragon and ScanTech is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Ceragon Networks and ScanTech AI Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ScanTech AI 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 ScanTech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ScanTech AI Systems has no effect on the direction of Ceragon Networks i.e., Ceragon Networks and ScanTech go up and down completely randomly.

Pair Corralation between Ceragon Networks and ScanTech

Given the investment horizon of 90 days Ceragon Networks is expected to generate 0.54 times more return on investment than ScanTech. However, Ceragon Networks is 1.85 times less risky than ScanTech. It trades about 0.06 of its potential returns per unit of risk. ScanTech AI Systems is currently generating about -0.26 per unit of risk. If you would invest  207.00  in Ceragon Networks on April 23, 2025 and sell it today you would earn a total of  17.00  from holding Ceragon Networks or generate 8.21% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Ceragon Networks  vs.  ScanTech AI Systems

 Performance 
       Timeline  
Ceragon Networks 

Risk-Adjusted Performance

Insignificant

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Ceragon Networks are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating basic indicators, Ceragon Networks may actually be approaching a critical reversion point that can send shares even higher in August 2025.
ScanTech AI Systems 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days ScanTech AI Systems has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in August 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Ceragon Networks and ScanTech Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Ceragon Networks and ScanTech

The main advantage of trading using opposite Ceragon Networks and ScanTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ceragon Networks position performs unexpectedly, ScanTech 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 ScanTech will offset losses from the drop in ScanTech's long position.
The idea behind Ceragon Networks and ScanTech AI Systems 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.

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