Correlation Between Comtech Telecommunicatio and Clearfield
Can any of the company-specific risk be diversified away by investing in both Comtech Telecommunicatio and Clearfield 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 Clearfield 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 Clearfield, you can compare the effects of market volatilities on Comtech Telecommunicatio and Clearfield 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 Clearfield. Check out your portfolio center. Please also check ongoing floating volatility patterns of Comtech Telecommunicatio and Clearfield.
Diversification Opportunities for Comtech Telecommunicatio and Clearfield
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Comtech and Clearfield is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Comtech Telecommunications Cor and Clearfield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clearfield 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 Clearfield. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clearfield has no effect on the direction of Comtech Telecommunicatio i.e., Comtech Telecommunicatio and Clearfield go up and down completely randomly.
Pair Corralation between Comtech Telecommunicatio and Clearfield
Given the investment horizon of 90 days Comtech Telecommunicatio is expected to generate 4.01 times less return on investment than Clearfield. In addition to that, Comtech Telecommunicatio is 5.84 times more volatile than Clearfield. It trades about 0.02 of its total potential returns per unit of risk. Clearfield is currently generating about 0.53 per unit of volatility. If you would invest 3,049 in Clearfield on October 20, 2024 and sell it today you would earn a total of 788.00 from holding Clearfield or generate 25.84% 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. Clearfield
Performance |
| Timeline |
| Comtech Telecommunicatio |
| Clearfield |
Comtech Telecommunicatio and Clearfield Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Comtech Telecommunicatio and Clearfield
The main advantage of trading using opposite Comtech Telecommunicatio and Clearfield positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Comtech Telecommunicatio position performs unexpectedly, Clearfield 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 Clearfield will offset losses from the drop in Clearfield's long position.| Comtech Telecommunicatio vs. KVH Industries | Comtech Telecommunicatio vs. Aviat Networks | Comtech Telecommunicatio vs. Harmonic | Comtech Telecommunicatio vs. Telesat Corp |
| Clearfield vs. Comtech Telecommunications Corp | Clearfield vs. Knowles Cor | Clearfield vs. Extreme Networks | Clearfield vs. KVH Industries |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |