Correlation Between Comtech Telecommunicatio and PGE Corp
Can any of the company-specific risk be diversified away by investing in both Comtech Telecommunicatio and PGE 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 PGE 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 PGE Corp, you can compare the effects of market volatilities on Comtech Telecommunicatio and PGE 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 PGE Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Comtech Telecommunicatio and PGE Corp.
Diversification Opportunities for Comtech Telecommunicatio and PGE Corp
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Comtech and PGE is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Comtech Telecommunications Cor and PGE Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PGE 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 PGE Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PGE Corp has no effect on the direction of Comtech Telecommunicatio i.e., Comtech Telecommunicatio and PGE Corp go up and down completely randomly.
Pair Corralation between Comtech Telecommunicatio and PGE Corp
Given the investment horizon of 90 days Comtech Telecommunications Corp is expected to under-perform the PGE Corp. In addition to that, Comtech Telecommunicatio is 5.15 times more volatile than PGE Corp. It trades about -0.01 of its total potential returns per unit of risk. PGE Corp is currently generating about 0.14 per unit of volatility. If you would invest 14,732 in PGE Corp on August 31, 2024 and sell it today you would earn a total of 952.00 from holding PGE Corp or generate 6.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 8.56% |
| Values | Daily Returns |
Comtech Telecommunications Cor vs. PGE Corp
Performance |
| Timeline |
| Comtech Telecommunicatio |
| PGE Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Comtech Telecommunicatio and PGE Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Comtech Telecommunicatio and PGE Corp
The main advantage of trading using opposite Comtech Telecommunicatio and PGE Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Comtech Telecommunicatio position performs unexpectedly, PGE 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 PGE Corp will offset losses from the drop in PGE Corp's long position.| Comtech Telecommunicatio vs. KVH Industries | Comtech Telecommunicatio vs. Aviat Networks | Comtech Telecommunicatio vs. Harmonic | Comtech Telecommunicatio vs. Telesat 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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