Comtech Telecommunications Corp Stock Volatility
| CMTL Stock | USD 5.81 0.06 1.02% |
Comtech Telecommunicatio is relatively risky given 3 months investment horizon. Comtech Telecommunicatio secures Sharpe Ratio (or Efficiency) of 0.21, which signifies that the company had a 0.21 % return per unit of risk over the last 3 months. We were able to interpolate and analyze data for twenty-eight different technical indicators, which can help you to evaluate if expected returns of 1.14% are justified by taking the suggested risk. Use Comtech Telecommunicatio Risk Adjusted Performance of 0.1849, downside deviation of 4.69, and Mean Deviation of 3.9 to evaluate company specific risk that cannot be diversified away.
Sharpe Ratio = 0.2065
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Based on monthly moving average Comtech Telecommunicatio is performing at about 16% of its full potential. If added to a well diversified portfolio the total return can be enhanced and market risk can be reduced. You can increase risk-adjusted return of Comtech Telecommunicatio by adding it to a well-diversified portfolio.
Key indicators related to Comtech Telecommunicatio's volatility include:90 Days Market Risk | Chance Of Distress | 90 Days Economic Sensitivity |
Comtech Telecommunicatio Stock volatility depicts how high the prices fluctuate around the mean (or its average) price. In other words, it is a statistical measure of the distribution of Comtech daily returns, and it is calculated using variance and standard deviation. We also use Comtech's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Comtech Telecommunicatio volatility.
ESG Sustainability
While most ESG disclosures are voluntary, Comtech Telecommunicatio's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Comtech Telecommunicatio's managers and investors.Environmental | Governance | Social |
Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Comtech Telecommunicatio at lower prices. For example, an investor can purchase Comtech stock that has halved in price over a short period. This will lower their average cost per share, thereby improving the overall portfolio performance when market normalizes. Main indicators related to Comtech Telecommunicatio's market risk premium analysis include:
Beta 1.43 | Alpha 1.05 | Risk 5.5 | Sharpe Ratio 0.21 | Expected Return 1.14 |
Moving together with Comtech Stock
| 0.79 | ENA | Enablence Technologies | PairCorr |
| 0.85 | ET | Evertz Technologies | PairCorr |
| 0.62 | MWE | MTI Wireless Edge | PairCorr |
| 0.82 | FMCB | Farmers Merchants Bancorp | PairCorr |
| 0.7 | DAIUF | Daifuku Co Earnings Call Tomorrow | PairCorr |
| 0.83 | FUWAF | Furukawa Electric | PairCorr |
| 0.76 | OBYCF | Obayashi | PairCorr |
| 0.87 | SECVY | Seche Environnement | PairCorr |
| 0.79 | BNKHF | BOC Hong Kong | PairCorr |
| 0.8 | RILYL | B Riley Financial | PairCorr |
Moving against Comtech Stock
| 0.66 | NDEKY | Nitto Denko Corp | PairCorr |
| 0.56 | BVC | Batm Advanced Commun | PairCorr |
| 0.33 | NVNIW | Nvni Group Limited | PairCorr |
Comtech Telecommunicatio Market Sensitivity And Downside Risk
Comtech Telecommunicatio's beta coefficient measures the volatility of Comtech stock compared to the systematic risk of the entire market represented by your selected benchmark. In mathematical terms, beta represents the slope of the line through a regression of data points where each of these points represents Comtech stock's returns against your selected market. In other words, Comtech Telecommunicatio's beta of 1.43 provides an investor with an approximation of how much risk Comtech Telecommunicatio stock can potentially add to one of your existing portfolios. Comtech Telecommunications Corp exhibits above-average semi-deviation for your current time horizon. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Comtech Telecommunicatio's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Comtech Telecommunicatio's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.
| α | 1.05 | β | 1.43 | Check current 90 days Comtech Telecommunicatio correlation with market (Dow Jones Industrial)
Comtech Telecommunicatio Volatility and Downside Risk
Comtech standard deviation measures the daily dispersion of prices over your selected time horizon relative to its mean. A typical volatile entity has a high standard deviation, while the deviation of a stable instrument is usually low. As a downside, the standard deviation calculates all uncertainty as risk, even when it is in your favor, such as above-average returns.
Using Comtech Put Option to Manage Risk
Put options written on Comtech Telecommunicatio grant holders of the option the right to sell a specified amount of Comtech Telecommunicatio at a specified price within a specified time frame. The put buyer has a limited loss and, while not fully unlimited gains, as the price of Comtech Stock cannot fall below zero, the put buyer does gain as the price drops. So, one way investors can hedge Comtech Telecommunicatio's position is by buying a put option against it. The put option used this way is usually referred to as insurance. If an undesired outcome occurs and loss on holding Comtech Telecommunicatio will be realized, the loss incurred will be offset by the profits made with the option trade.
Comtech Telecommunicatio's PUT expiring on 2026-04-17
Profit |
| Comtech Telecommunicatio Price At Expiration |
Current Comtech Telecommunicatio Insurance Chain
| Delta | Gamma | Open Int | Expiration | Current Spread | Last Price | |||
Put | CMTL260417P00002500 | -0.092229 | 0.026808 | 185 | 2026-04-17 | 0.0 - 0.45 | 0.0 | View |
Put | CMTL260417P00005000 | -0.291818 | 0.108046 | 466 | 2026-04-17 | 0.45 - 1.15 | 0.0 | View |
Comtech Telecommunicatio Stock Volatility Analysis
Volatility refers to the frequency at which Comtech Telecommunicatio stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Comtech Telecommunicatio's price changes. Investors will then calculate the volatility of Comtech Telecommunicatio's stock to predict their future moves. A stock that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A stock with relatively stable price changes has low volatility. A highly volatile stock is riskier, but the risk cuts both ways. Investing in highly volatile security can either be highly successful, or you may experience significant failure. There are two main types of Comtech Telecommunicatio's volatility:
Historical Volatility
This type of stock volatility measures Comtech Telecommunicatio's fluctuations based on previous trends. It's commonly used to predict Comtech Telecommunicatio's future behavior based on its past. However, it cannot conclusively determine the future direction of the stock.Implied Volatility
This type of volatility provides a positive outlook on future price fluctuations for Comtech Telecommunicatio's current market price. This means that the stock will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on Comtech Telecommunicatio's to be redeemed at a future date.Transformation |
The output start index for this execution was zero with a total number of output elements of sixty-one. Comtech Telecommunicatio Average Price is the average of the sum of open, high, low and close daily prices of a bar. It can be used to smooth an indicator that normally takes just the closing price as input.
Comtech Telecommunicatio Projected Return Density Against Market
Given the investment horizon of 90 days the stock has the beta coefficient of 1.4295 suggesting as the benchmark fluctuates upward, the company is expected to outperform it on average. However, if the benchmark returns are projected to be negative, Comtech Telecommunicatio will likely underperform.Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Comtech Telecommunicatio or Communications Equipment sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Comtech Telecommunicatio's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Comtech stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
Predicted Return Density |
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What Drives a Comtech Telecommunicatio Price Volatility?
Several factors can influence a stock's market volatility:Industry
Specific events can influence volatility within a particular industry. For instance, a significant weather upheaval in a crucial oil-production site may cause oil prices to increase in the oil sector. The direct result will be the rise in the stock price of oil distribution companies. Similarly, any government regulation in a specific industry could negatively influence stock prices due to increased regulations on compliance that may impact the company's future earnings and growth.Political and Economic environment
When governments make significant decisions regarding trade agreements, policies, and legislation regarding specific industries, they will influence stock prices. Everything from speeches to elections may influence investors, who can directly influence the stock prices in any particular industry. The prevailing economic situation also plays a significant role in stock prices. When the economy is doing well, investors will have a positive reaction and hence, better stock prices and vice versa.The Company's Performance
Sometimes volatility will only affect an individual company. For example, a revolutionary product launch or strong earnings report may attract investor attention to the company. This positive attention may impact the company's stock price. In contrast, product recalls and data breaches may negatively influence a company's stock prices.Comtech Telecommunicatio Stock Risk Measures
Given the investment horizon of 90 days the coefficient of variation of Comtech Telecommunicatio is 484.3. The daily returns are distributed with a variance of 30.28 and standard deviation of 5.5. The mean deviation of Comtech Telecommunications Corp is currently at 3.99. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.8
α | Alpha over Dow Jones | 1.05 | |
β | Beta against Dow Jones | 1.43 | |
σ | Overall volatility | 5.50 | |
Ir | Information ratio | 0.20 |
Comtech Telecommunicatio Stock Return Volatility
Comtech Telecommunicatio historical daily return volatility represents how much of Comtech Telecommunicatio stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company inherits 5.5028% risk (volatility on return distribution) over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7778% volatility on return distribution over the 90 days horizon. Performance |
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Related Correlations Analysis
Correlation Matchups
Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.High positive correlations
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Risk-Adjusted Indicators
There is a big difference between Comtech Stock performing well and Comtech Telecommunicatio Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Comtech Telecommunicatio's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.| Mean Deviation | Jensen Alpha | Sortino Ratio | Treynor Ratio | Semi Deviation | Expected Shortfall | Potential Upside | Value @Risk | Maximum Drawdown | ||
|---|---|---|---|---|---|---|---|---|---|---|
| NA | 3.62 | (0.37) | 0.00 | (0.29) | 0.00 | 7.45 | 38.30 | |||
| INVE | 2.43 | (0.11) | 0.00 | (0.83) | 0.00 | 4.62 | 15.58 | |||
| ATOM | 4.39 | (0.20) | 0.00 | (0.04) | 0.00 | 9.55 | 31.96 | |||
| AMPG | 4.43 | (0.08) | (0.01) | 0.03 | 5.09 | 11.28 | 31.09 | |||
| MIND | 4.55 | (0.59) | 0.00 | (0.30) | 0.00 | 7.92 | 31.38 | |||
| PSQH | 3.67 | (1.55) | 0.00 | (0.42) | 0.00 | 6.67 | 25.34 | |||
| VELO | 10.67 | 1.83 | 0.25 | 0.36 | 8.71 | 23.12 | 74.84 | |||
| LINK | 3.91 | (0.66) | 0.00 | (1.00) | 0.00 | 8.38 | 23.00 |
About Comtech Telecommunicatio Volatility
Volatility is a rate at which the price of Comtech Telecommunicatio or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Comtech Telecommunicatio may increase or decrease. In other words, similar to Comtech's beta indicator, it measures the risk of Comtech Telecommunicatio and helps estimate the fluctuations that may happen in a short period of time. So if prices of Comtech Telecommunicatio fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility.
Please read more on our technical analysis page.| Last Reported | Projected for Next Year | ||
| Selling And Marketing Expenses | 27.4 M | 21.7 M | |
| Market Cap | 366.5 M | 384.8 M |
Comtech Telecommunicatio's stock volatility refers to the amount of uncertainty or risk involved with the size of changes in its stock's price. It is a statistical measure of the dispersion of returns on Comtech Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Comtech Telecommunicatio's price varies over time.
3 ways to utilize Comtech Telecommunicatio's volatility to invest better
Higher Comtech Telecommunicatio's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Comtech Telecommunicatio stock is relatively stable. Investors and traders use stock volatility as an indicator of risk and potential reward, as stocks with higher volatility can offer the potential for more significant returns but also come with a greater risk of losses. Comtech Telecommunicatio stock volatility can provide helpful information for making investment decisions in the following ways:- Measuring Risk: Volatility can be used as a measure of risk, which can help you determine the potential fluctuations in the value of Comtech Telecommunicatio investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Comtech Telecommunicatio's stock can indicate that there is potential for significant price movements, either up or down, which could present investment opportunities.
- Diversification: Understanding how the volatility of Comtech Telecommunicatio's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Comtech Telecommunicatio Investment Opportunity
Comtech Telecommunications Corp has a volatility of 5.5 and is 7.05 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of Comtech Telecommunications Corp is lower than 49 percent of all global equities and portfolios over the last 90 days. You can use Comtech Telecommunications Corp to protect your portfolios against small market fluctuations. The stock experiences a somewhat bearish sentiment, but the market may correct it shortly. Check odds of Comtech Telecommunicatio to be traded at $5.64 in 90 days.Very poor diversification
The correlation between Comtech Telecommunications Cor and DJI is 0.83 (i.e., Very poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Comtech Telecommunications Cor and DJI in the same portfolio, assuming nothing else is changed.
Comtech Telecommunicatio Additional Risk Indicators
The analysis of Comtech Telecommunicatio's secondary risk indicators is one of the essential steps in making a buy or sell decision. The process involves identifying the amount of risk involved in Comtech Telecommunicatio's investment and either accepting that risk or mitigating it. Along with some common measures of Comtech Telecommunicatio stock's risk such as standard deviation, beta, or value at risk, we also provide a set of secondary indicators that can assist in the individual investment decision or help in hedging the risk of your existing portfolios.
| Risk Adjusted Performance | 0.1849 | |||
| Market Risk Adjusted Performance | 0.8262 | |||
| Mean Deviation | 3.9 | |||
| Semi Deviation | 4.06 | |||
| Downside Deviation | 4.69 | |||
| Coefficient Of Variation | 453.82 | |||
| Standard Deviation | 5.34 |
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential stocks, we recommend comparing similar stocks with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.
Comtech Telecommunicatio Suggested Diversification Pairs
Pair trading is one of the very effective strategies used by professional day traders and hedge funds capitalizing on short-time and mid-term market inefficiencies. The approach is based on the fact that the ratio of prices of two correlating shares is long-term stable and oscillates around the average value. If the correlation ratio comes outside the common area, you can speculate with a high success rate that the ratio will return to the mean value and collect a profit.
The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against Comtech Telecommunicatio as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. Comtech Telecommunicatio's systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, Comtech Telecommunicatio's unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to Comtech Telecommunications Corp.
When determining whether Comtech Telecommunicatio is a strong investment it is important to analyze Comtech Telecommunicatio's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Comtech Telecommunicatio's future performance. For an informed investment choice regarding Comtech Stock, refer to the following important reports: Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Comtech Telecommunications Corp. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in persons. You can also try the FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Is Communications Equipment space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Comtech Telecommunicatio. Projected growth potential of Comtech fundamentally drives upward valuation adjustments. The financial industry is built on trying to define current growth potential and future valuation accurately. Comprehensive Comtech Telecommunicatio assessment requires weighing all these inputs, though not all factors influence outcomes equally.
Quarterly Earnings Growth 5.87 | Earnings Share (2.31) | Revenue Per Share | Quarterly Revenue Growth (0.04) | Return On Assets |
The market value of Comtech Telecommunicatio is measured differently than its book value, which is the value of Comtech that is recorded on the company's balance sheet. Investors also form their own opinion of Comtech Telecommunicatio's value that differs from its market value or its book value, called intrinsic value, which is Comtech Telecommunicatio's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Comtech Telecommunicatio's market value can be influenced by many factors that don't directly affect Comtech Telecommunicatio's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
It's important to distinguish between Comtech Telecommunicatio's intrinsic value and market price, which are calculated using different methodologies. Investment decisions regarding Comtech Telecommunicatio should consider multiple factors including financial performance, growth metrics, competitive position, and professional analysis. Meanwhile, Comtech Telecommunicatio's quoted price indicates the marketplace figure where supply meets demand through bilateral consent.