Correlation Between CommScope Holding and Avnet

Can any of the company-specific risk be diversified away by investing in both CommScope Holding and Avnet 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 CommScope Holding and Avnet into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between CommScope Holding Co and Avnet Inc, you can compare the effects of market volatilities on CommScope Holding and Avnet 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 CommScope Holding with a short position of Avnet. Check out your portfolio center. Please also check ongoing floating volatility patterns of CommScope Holding and Avnet.

Diversification Opportunities for CommScope Holding and Avnet

-0.49

Correlation Coefficient

CommScope Holding  Avnet

Very good diversification

The 3 months correlation between CommScope and Avnet is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding CommScope Holding Co and Avnet Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Avnet Inc and CommScope Holding 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 CommScope Holding Co are associated (or correlated) with Avnet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Avnet Inc has no effect on the direction of CommScope Holding i.e., CommScope Holding and Avnet go up and down completely randomly.

Pair Corralation between CommScope Holding and Avnet

Given the investment horizon of 90 days CommScope Holding Co is expected to generate 3.72 times more return on investment than Avnet. However, CommScope Holding is 3.72 times more volatile than Avnet Inc. It trades about 0.1 of its potential returns per unit of risk. Avnet Inc is currently generating about 0.0 per unit of risk. If you would invest  574.00  in CommScope Holding Co on September 9, 2025 and sell it today you would earn a total of  1,401  from holding CommScope Holding Co or generate 244.08% return on investment over 90 days.

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

CommScope Holding Co  vs.  Avnet Inc

CommScope Holding

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in CommScope Holding Co are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of very abnormal primary indicators, CommScope Holding displayed solid returns over the last few months and may actually be approaching a breakup point.

Avnet Inc

Risk-Adjusted Performance

Weakest

Over the last 90 days Avnet Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Avnet is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with CommScope Holding and Avnet

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

The idea behind CommScope Holding Co and Avnet Inc 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.

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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.