Correlation Between Comtech Telecommunicatio and Eshallgo

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

Diversification Opportunities for Comtech Telecommunicatio and Eshallgo

-0.79

Correlation Coefficient

Comtech Telecommunicatio  Eshallgo

Pay attention - limited upside

The 3 months correlation between Comtech and Eshallgo is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Comtech Telecommunications Cor and Eshallgo Class A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eshallgo Class A 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 Eshallgo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eshallgo Class A has no effect on the direction of Comtech Telecommunicatio i.e., Comtech Telecommunicatio and Eshallgo go up and down completely randomly.

Pair Corralation between Comtech Telecommunicatio and Eshallgo

Given the investment horizon of 90 days Comtech Telecommunications Corp is expected to under-perform the Eshallgo. In addition to that, Comtech Telecommunicatio is 1.25 times more volatile than Eshallgo Class A. It trades about -0.04 of its total potential returns per unit of risk. Eshallgo Class A is currently generating about 0.01 per unit of volatility. If you would invest  79.00  in Eshallgo Class A on April 29, 2025 and sell it today you would lose (1.00) from holding Eshallgo Class A or give up 1.27% of portfolio value over 90 days.

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

Comtech Telecommunications Cor  vs.  Eshallgo Class A

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 12 (%) of all global equities and portfolios over the last 90 days. Despite quite unfluctuating basic indicators, Comtech Telecommunicatio disclosed solid returns over the last few months and may actually be approaching a breakup point.

Eshallgo Class A

Risk-Adjusted Performance

Very Weak

Over the last 90 days Eshallgo Class A has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's technical and fundamental indicators remain very healthy which may send shares a bit higher in August 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Comtech Telecommunicatio and Eshallgo

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

The idea behind Comtech Telecommunications Corp and Eshallgo Class A 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.