Correlation Between Comtech Telecommunicatio and Silicom
Can any of the company-specific risk be diversified away by investing in both Comtech Telecommunicatio and Silicom 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 Silicom 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 Silicom, you can compare the effects of market volatilities on Comtech Telecommunicatio and Silicom 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 Silicom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Comtech Telecommunicatio and Silicom.
Diversification Opportunities for Comtech Telecommunicatio and Silicom
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Comtech and Silicom is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Comtech Telecommunications Cor and Silicom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silicom 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 Silicom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silicom has no effect on the direction of Comtech Telecommunicatio i.e., Comtech Telecommunicatio and Silicom go up and down completely randomly.
Pair Corralation between Comtech Telecommunicatio and Silicom
Given the investment horizon of 90 days Comtech Telecommunications Corp is expected to under-perform the Silicom. In addition to that, Comtech Telecommunicatio is 2.51 times more volatile than Silicom. It trades about -0.06 of its total potential returns per unit of risk. Silicom is currently generating about 0.22 per unit of volatility. If you would invest 1,315 in Silicom on August 27, 2024 and sell it today you would earn a total of 181.00 from holding Silicom or generate 13.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Comtech Telecommunications Cor vs. Silicom
Performance |
| Timeline |
| Comtech Telecommunicatio |
| Silicom |
Comtech Telecommunicatio and Silicom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Comtech Telecommunicatio and Silicom
The main advantage of trading using opposite Comtech Telecommunicatio and Silicom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Comtech Telecommunicatio position performs unexpectedly, Silicom 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 Silicom will offset losses from the drop in Silicom's long position.| Comtech Telecommunicatio vs. Ichor Holdings | Comtech Telecommunicatio vs. Fabrinet | Comtech Telecommunicatio vs. Hello Group | Comtech Telecommunicatio vs. Ultra Clean Holdings |
| Silicom vs. Ituran Location and | Silicom vs. Sapiens International | Silicom vs. Allot Communications | Silicom vs. Radcom |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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