Correlation Between Comtech Telecommunicatio and Moving IMage
Can any of the company-specific risk be diversified away by investing in both Comtech Telecommunicatio and Moving IMage 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 Moving IMage 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 Moving iMage Technologies, you can compare the effects of market volatilities on Comtech Telecommunicatio and Moving IMage 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 Moving IMage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Comtech Telecommunicatio and Moving IMage.
Diversification Opportunities for Comtech Telecommunicatio and Moving IMage
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Comtech and Moving is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Comtech Telecommunications Cor and Moving iMage Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Moving iMage 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 Moving IMage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Moving iMage Technologies has no effect on the direction of Comtech Telecommunicatio i.e., Comtech Telecommunicatio and Moving IMage go up and down completely randomly.
Pair Corralation between Comtech Telecommunicatio and Moving IMage
Given the investment horizon of 90 days Comtech Telecommunications Corp is expected to generate 2.05 times more return on investment than Moving IMage. However, Comtech Telecommunicatio is 2.05 times more volatile than Moving iMage Technologies. It trades about -0.01 of its potential returns per unit of risk. Moving iMage Technologies is currently generating about -0.08 per unit of risk. If you would invest 384.00 in Comtech Telecommunications Corp on August 28, 2024 and sell it today you would lose (28.00) from holding Comtech Telecommunications Corp or give up 7.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Comtech Telecommunications Cor vs. Moving iMage Technologies
Performance |
| Timeline |
| Comtech Telecommunicatio |
| Moving iMage Technologies |
Comtech Telecommunicatio and Moving IMage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Comtech Telecommunicatio and Moving IMage
The main advantage of trading using opposite Comtech Telecommunicatio and Moving IMage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Comtech Telecommunicatio position performs unexpectedly, Moving IMage 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 Moving IMage will offset losses from the drop in Moving IMage's long position.| Comtech Telecommunicatio vs. Ichor Holdings | Comtech Telecommunicatio vs. Fabrinet | Comtech Telecommunicatio vs. Hello Group | Comtech Telecommunicatio vs. Ultra Clean Holdings |
| Moving IMage vs. Franklin Wireless Corp | Moving IMage vs. Wialan Technologies | Moving IMage vs. TPT Global Tech | Moving IMage 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Stocks Directory Find actively traded stocks across global markets | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |