Correlation Between Comtech Telecommunicatio and Akoustis Technologies
Can any of the company-specific risk be diversified away by investing in both Comtech Telecommunicatio and Akoustis Technologies 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 Comtech Telecommunicatio and Akoustis Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Comtech Telecommunications Corp and Akoustis Technologies, you can compare the effects of market volatilities on Comtech Telecommunicatio and Akoustis Technologies 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 Comtech Telecommunicatio with a short position of Akoustis Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Comtech Telecommunicatio and Akoustis Technologies.
Diversification Opportunities for Comtech Telecommunicatio and Akoustis Technologies
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Comtech and Akoustis is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Comtech Telecommunications Cor and Akoustis Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akoustis Technologies and Comtech Telecommunicatio 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 Comtech Telecommunications Corp are associated (or correlated) with Akoustis Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akoustis Technologies has no effect on the direction of Comtech Telecommunicatio i.e., Comtech Telecommunicatio and Akoustis Technologies go up and down completely randomly.
Pair Corralation between Comtech Telecommunicatio and Akoustis Technologies
Given the investment horizon of 90 days Comtech Telecommunications Corp is expected to generate 0.69 times more return on investment than Akoustis Technologies. However, Comtech Telecommunications Corp is 1.45 times less risky than Akoustis Technologies. It trades about -0.01 of its potential returns per unit of risk. Akoustis Technologies is currently generating about -0.03 per unit of risk. If you would invest 1,258 in Comtech Telecommunications Corp on August 24, 2024 and sell it today you would lose (929.00) from holding Comtech Telecommunications Corp or give up 73.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Comtech Telecommunications Cor vs. Akoustis Technologies
Performance |
| Timeline |
| Comtech Telecommunicatio |
| Akoustis Technologies |
Comtech Telecommunicatio and Akoustis Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Comtech Telecommunicatio and Akoustis Technologies
The main advantage of trading using opposite Comtech Telecommunicatio and Akoustis Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Comtech Telecommunicatio position performs unexpectedly, Akoustis Technologies 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 Akoustis Technologies will offset losses from the drop in Akoustis Technologies' long position.| Comtech Telecommunicatio vs. KVH Industries | Comtech Telecommunicatio vs. Aviat Networks | Comtech Telecommunicatio vs. Harmonic | Comtech Telecommunicatio vs. Telesat Corp |
| Akoustis Technologies vs. Hewlett Packard Enterprise | Akoustis Technologies vs. Juniper Networks | Akoustis Technologies vs. Cisco Systems | Akoustis Technologies vs. Viavi Solutions |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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