Correlation Between Comtech Telecommunicatio and AmpliTech
Can any of the company-specific risk be diversified away by investing in both Comtech Telecommunicatio and AmpliTech 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 AmpliTech 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 AmpliTech Group, you can compare the effects of market volatilities on Comtech Telecommunicatio and AmpliTech 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 AmpliTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Comtech Telecommunicatio and AmpliTech.
Diversification Opportunities for Comtech Telecommunicatio and AmpliTech
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Comtech and AmpliTech is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Comtech Telecommunications Cor and AmpliTech Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AmpliTech Group 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 AmpliTech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AmpliTech Group has no effect on the direction of Comtech Telecommunicatio i.e., Comtech Telecommunicatio and AmpliTech go up and down completely randomly.
Pair Corralation between Comtech Telecommunicatio and AmpliTech
Given the investment horizon of 90 days Comtech Telecommunications Corp is expected to under-perform the AmpliTech. But the stock apears to be less risky and, when comparing its historical volatility, Comtech Telecommunications Corp is 3.18 times less risky than AmpliTech. The stock trades about -0.01 of its potential returns per unit of risk. The AmpliTech Group is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 11.00 in AmpliTech Group on November 4, 2024 and sell it today you would earn a total of 64.00 from holding AmpliTech Group or generate 581.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Comtech Telecommunications Cor vs. AmpliTech Group
Performance |
| Timeline |
| Comtech Telecommunicatio |
| AmpliTech Group |
Comtech Telecommunicatio and AmpliTech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Comtech Telecommunicatio and AmpliTech
The main advantage of trading using opposite Comtech Telecommunicatio and AmpliTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Comtech Telecommunicatio position performs unexpectedly, AmpliTech 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 AmpliTech will offset losses from the drop in AmpliTech's long position.| Comtech Telecommunicatio vs. KVH Industries | Comtech Telecommunicatio vs. Aviat Networks | Comtech Telecommunicatio vs. Harmonic | Comtech Telecommunicatio vs. Telesat Corp |
| AmpliTech vs. Auddia Inc | AmpliTech vs. Amplitech Group | AmpliTech vs. Advent Technologies Holdings | AmpliTech vs. Cyclo Therapeutics |
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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