Correlation Between Gilat Satellite and Comtech Telecommunicatio
Can any of the company-specific risk be diversified away by investing in both Gilat Satellite and Comtech Telecommunicatio 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 Gilat Satellite and Comtech Telecommunicatio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gilat Satellite Networks and Comtech Telecommunications Corp, you can compare the effects of market volatilities on Gilat Satellite and Comtech Telecommunicatio 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 Gilat Satellite with a short position of Comtech Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gilat Satellite and Comtech Telecommunicatio.
Diversification Opportunities for Gilat Satellite and Comtech Telecommunicatio
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Gilat and Comtech is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Gilat Satellite Networks and Comtech Telecommunications Cor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Comtech Telecommunicatio and Gilat Satellite 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 Gilat Satellite Networks are associated (or correlated) with Comtech Telecommunicatio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Comtech Telecommunicatio has no effect on the direction of Gilat Satellite i.e., Gilat Satellite and Comtech Telecommunicatio go up and down completely randomly.
Pair Corralation between Gilat Satellite and Comtech Telecommunicatio
Given the investment horizon of 90 days Gilat Satellite is expected to generate 16.44 times less return on investment than Comtech Telecommunicatio. But when comparing it to its historical volatility, Gilat Satellite Networks is 3.67 times less risky than Comtech Telecommunicatio. It trades about 0.02 of its potential returns per unit of risk. Comtech Telecommunications Corp is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 242.00 in Comtech Telecommunications Corp on August 28, 2024 and sell it today you would earn a total of 114.00 from holding Comtech Telecommunications Corp or generate 47.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gilat Satellite Networks vs. Comtech Telecommunications Cor
Performance |
| Timeline |
| Gilat Satellite Networks |
| Comtech Telecommunicatio |
Gilat Satellite and Comtech Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gilat Satellite and Comtech Telecommunicatio
The main advantage of trading using opposite Gilat Satellite and Comtech Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gilat Satellite position performs unexpectedly, Comtech Telecommunicatio 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 Comtech Telecommunicatio will offset losses from the drop in Comtech Telecommunicatio's long position.| Gilat Satellite vs. ADTRAN Inc | Gilat Satellite vs. Mynaric AG ADR | Gilat Satellite vs. KVH Industries | Gilat Satellite vs. Telesat Corp |
| Comtech Telecommunicatio vs. Ichor Holdings | Comtech Telecommunicatio vs. Fabrinet | Comtech Telecommunicatio vs. Hello Group | Comtech Telecommunicatio vs. Ultra Clean Holdings |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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