Correlation Between CommScope Holding and Itron

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

Diversification Opportunities for CommScope Holding and Itron

-0.78

Correlation Coefficient

CommScope Holding  Itron

Pay attention - limited upside

The 3 months correlation between CommScope and Itron is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding CommScope Holding Co and Itron Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Itron 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 Itron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Itron Inc has no effect on the direction of CommScope Holding i.e., CommScope Holding and Itron go up and down completely randomly.

Pair Corralation between CommScope Holding and Itron

Given the investment horizon of 90 days CommScope Holding Co is expected to generate 2.65 times more return on investment than Itron. However, CommScope Holding is 2.65 times more volatile than Itron Inc. It trades about 0.11 of its potential returns per unit of risk. Itron Inc is currently generating about 0.03 per unit of risk. If you would invest  1,720  in CommScope Holding Co on September 22, 2025 and sell it today you would earn a total of  109.00  from holding CommScope Holding Co or generate 6.34% return on investment over 90 days.

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

CommScope Holding Co  vs.  Itron Inc

CommScope Holding

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in CommScope Holding Co are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of very abnormal primary indicators, CommScope Holding may actually be approaching a critical reversion point that can send shares even higher in January 2026.

Itron Inc

Risk-Adjusted Performance

Weakest

Over the last 90 days Itron Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in January 2026. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with CommScope Holding and Itron

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

The idea behind CommScope Holding Co and Itron 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.

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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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.