Correlation Between Comtech Telecommunicatio and UNITED INTERNET

Can any of the company-specific risk be diversified away by investing in both Comtech Telecommunicatio and UNITED INTERNET 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 UNITED INTERNET 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 UNITED INTERNET N, you can compare the effects of market volatilities on Comtech Telecommunicatio and UNITED INTERNET 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 UNITED INTERNET. Check out your portfolio center. Please also check ongoing floating volatility patterns of Comtech Telecommunicatio and UNITED INTERNET.

Diversification Opportunities for Comtech Telecommunicatio and UNITED INTERNET

0.62

Correlation Coefficient

Comtech Telecommunicatio  UNITED INTERNET

Poor diversification

The 3 months correlation between Comtech and UNITED is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Comtech Telecommunications Cor and UNITED INTERNET N in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UNITED INTERNET N 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 UNITED INTERNET. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UNITED INTERNET N has no effect on the direction of Comtech Telecommunicatio i.e., Comtech Telecommunicatio and UNITED INTERNET go up and down completely randomly.

Pair Corralation between Comtech Telecommunicatio and UNITED INTERNET

Assuming the 90 days trading horizon Comtech Telecommunications Corp is expected to generate 1.93 times more return on investment than UNITED INTERNET. However, Comtech Telecommunicatio is 1.93 times more volatile than UNITED INTERNET N. It trades about 0.19 of its potential returns per unit of risk. UNITED INTERNET N is currently generating about 0.1 per unit of risk. If you would invest  175.00  in Comtech Telecommunications Corp on August 2, 2025 and sell it today you would earn a total of  91.00  from holding Comtech Telecommunications Corp or generate 52.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Comtech Telecommunications Cor  vs.  UNITED INTERNET N

Comtech Telecommunicatio

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Comtech Telecommunications Corp are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, Comtech Telecommunicatio unveiled solid returns over the last few months and may actually be approaching a breakup point.

UNITED INTERNET N

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in UNITED INTERNET N are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, UNITED INTERNET unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Comtech Telecommunicatio and UNITED INTERNET

The main advantage of trading using opposite Comtech Telecommunicatio and UNITED INTERNET positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Comtech Telecommunicatio position performs unexpectedly, UNITED INTERNET 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 UNITED INTERNET will offset losses from the drop in UNITED INTERNET's long position.

The idea behind Comtech Telecommunications Corp and UNITED INTERNET N pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Money Managers module to screen money managers from public funds and ETFs managed around the world.