Correlation Between Comtech Telecommunicatio and Electronic Tele

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

Diversification Opportunities for Comtech Telecommunicatio and Electronic Tele

0.0

Correlation Coefficient

Comtech Telecommunicatio  Electronic Tele

Pay attention - limited upside

The 3 months correlation between Comtech and Electronic is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Comtech Telecommunications Cor and Electronic Tele Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Electronic Tele Comm 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 Electronic Tele. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Electronic Tele Comm has no effect on the direction of Comtech Telecommunicatio i.e., Comtech Telecommunicatio and Electronic Tele go up and down completely randomly.

Pair Corralation between Comtech Telecommunicatio and Electronic Tele

If you would invest  148.00  in Comtech Telecommunications Corp on May 4, 2025 and sell it today you would earn a total of  57.00  from holding Comtech Telecommunications Corp or generate 38.51% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Comtech Telecommunications Cor  vs.  Electronic Tele Communications

Comtech Telecommunicatio

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Comtech Telecommunications Corp are ranked lower than 9 (%) 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.

Electronic Tele Comm

Risk-Adjusted Performance

Very Weak

Over the last 90 days Electronic Tele Communications has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong forward indicators, Electronic Tele is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Comtech Telecommunicatio and Electronic Tele

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

The idea behind Comtech Telecommunications Corp and Electronic Tele Communications 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.