Correlation Between Comtech Telecommunicatio and Innovid Corp
Can any of the company-specific risk be diversified away by investing in both Comtech Telecommunicatio and Innovid Corp 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 Innovid Corp 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 Innovid Corp, you can compare the effects of market volatilities on Comtech Telecommunicatio and Innovid Corp 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 Innovid Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Comtech Telecommunicatio and Innovid Corp.
Diversification Opportunities for Comtech Telecommunicatio and Innovid Corp
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Comtech and Innovid is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Comtech Telecommunications Cor and Innovid Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Innovid Corp 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 Innovid Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Innovid Corp has no effect on the direction of Comtech Telecommunicatio i.e., Comtech Telecommunicatio and Innovid Corp go up and down completely randomly.
Pair Corralation between Comtech Telecommunicatio and Innovid Corp
Given the investment horizon of 90 days Comtech Telecommunications Corp is expected to under-perform the Innovid Corp. But the stock apears to be less risky and, when comparing its historical volatility, Comtech Telecommunications Corp is 2.57 times less risky than Innovid Corp. The stock trades about -0.07 of its potential returns per unit of risk. The Innovid Corp is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 182.00 in Innovid Corp on August 24, 2024 and sell it today you would earn a total of 119.00 from holding Innovid Corp or generate 65.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Comtech Telecommunications Cor vs. Innovid Corp
Performance |
| Timeline |
| Comtech Telecommunicatio |
| Innovid Corp |
Comtech Telecommunicatio and Innovid Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Comtech Telecommunicatio and Innovid Corp
The main advantage of trading using opposite Comtech Telecommunicatio and Innovid Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Comtech Telecommunicatio position performs unexpectedly, Innovid Corp 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 Innovid Corp will offset losses from the drop in Innovid Corp's long position.| Comtech Telecommunicatio vs. KVH Industries | Comtech Telecommunicatio vs. Aviat Networks | Comtech Telecommunicatio vs. Harmonic | Comtech Telecommunicatio vs. Telesat Corp |
| Innovid Corp vs. ADTRAN Inc | Innovid Corp vs. Belden Inc | Innovid Corp vs. ADC Therapeutics SA | Innovid Corp vs. Comtech Telecommunications Corp |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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