Correlation Between Comtech Telecommunicatio and Scienjoy Holding
Can any of the company-specific risk be diversified away by investing in both Comtech Telecommunicatio and Scienjoy Holding 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 Scienjoy Holding 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 Scienjoy Holding Corp, you can compare the effects of market volatilities on Comtech Telecommunicatio and Scienjoy Holding 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 Scienjoy Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Comtech Telecommunicatio and Scienjoy Holding.
Diversification Opportunities for Comtech Telecommunicatio and Scienjoy Holding
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Comtech and Scienjoy is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Comtech Telecommunications Cor and Scienjoy Holding Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scienjoy Holding 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 Scienjoy Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scienjoy Holding Corp has no effect on the direction of Comtech Telecommunicatio i.e., Comtech Telecommunicatio and Scienjoy Holding go up and down completely randomly.
Pair Corralation between Comtech Telecommunicatio and Scienjoy Holding
Given the investment horizon of 90 days Comtech Telecommunications Corp is expected to under-perform the Scienjoy Holding. In addition to that, Comtech Telecommunicatio is 1.11 times more volatile than Scienjoy Holding Corp. It trades about -0.02 of its total potential returns per unit of risk. Scienjoy Holding Corp is currently generating about 0.12 per unit of volatility. If you would invest 82.00 in Scienjoy Holding Corp on August 31, 2024 and sell it today you would earn a total of 12.00 from holding Scienjoy Holding Corp or generate 14.63% 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. Scienjoy Holding Corp
Performance |
| Timeline |
| Comtech Telecommunicatio |
| Scienjoy Holding Corp |
Comtech Telecommunicatio and Scienjoy Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Comtech Telecommunicatio and Scienjoy Holding
The main advantage of trading using opposite Comtech Telecommunicatio and Scienjoy Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Comtech Telecommunicatio position performs unexpectedly, Scienjoy Holding 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 Scienjoy Holding will offset losses from the drop in Scienjoy Holding's long position.| Comtech Telecommunicatio vs. KVH Industries | Comtech Telecommunicatio vs. Aviat Networks | Comtech Telecommunicatio vs. Harmonic | Comtech Telecommunicatio vs. Telesat Corp |
| Scienjoy Holding vs. Cumulus Media Class | Scienjoy Holding vs. E W Scripps | Scienjoy Holding vs. Beasley Broadcast Group | Scienjoy Holding vs. Gray Television |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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