Correlation Between Comtech Telecommunicatio and Maxar Technologies
Can any of the company-specific risk be diversified away by investing in both Comtech Telecommunicatio and Maxar 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 Maxar 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 Maxar Technologies, you can compare the effects of market volatilities on Comtech Telecommunicatio and Maxar 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 Maxar Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Comtech Telecommunicatio and Maxar Technologies.
Diversification Opportunities for Comtech Telecommunicatio and Maxar Technologies
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Comtech and Maxar is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Comtech Telecommunications Cor and Maxar Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maxar 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 Maxar Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maxar Technologies has no effect on the direction of Comtech Telecommunicatio i.e., Comtech Telecommunicatio and Maxar Technologies go up and down completely randomly.
Pair Corralation between Comtech Telecommunicatio and Maxar Technologies
If you would invest 208.00 in Comtech Telecommunications Corp on September 3, 2024 and sell it today you would earn a total of 131.00 from holding Comtech Telecommunications Corp or generate 62.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.68% |
| Values | Daily Returns |
Comtech Telecommunications Cor vs. Maxar Technologies
Performance |
| Timeline |
| Comtech Telecommunicatio |
| Maxar Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Comtech Telecommunicatio and Maxar Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Comtech Telecommunicatio and Maxar Technologies
The main advantage of trading using opposite Comtech Telecommunicatio and Maxar Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Comtech Telecommunicatio position performs unexpectedly, Maxar 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 Maxar Technologies will offset losses from the drop in Maxar Technologies' long position.| Comtech Telecommunicatio vs. KVH Industries | Comtech Telecommunicatio vs. Aviat Networks | Comtech Telecommunicatio vs. Harmonic | Comtech Telecommunicatio vs. Telesat Corp |
| Maxar Technologies vs. Comtech Telecommunications Corp | Maxar Technologies vs. NETGEAR | Maxar Technologies vs. KVH Industries | Maxar Technologies vs. Silicom |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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