Correlation Between C-Com Satellite and Caldwell Partners

Can any of the company-specific risk be diversified away by investing in both C-Com Satellite and Caldwell Partners 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 C-Com Satellite and Caldwell Partners into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between C Com Satellite Systems and The Caldwell Partners, you can compare the effects of market volatilities on C-Com Satellite and Caldwell Partners 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 C-Com Satellite with a short position of Caldwell Partners. Check out your portfolio center. Please also check ongoing floating volatility patterns of C-Com Satellite and Caldwell Partners.

Diversification Opportunities for C-Com Satellite and Caldwell Partners

0.04

Correlation Coefficient

C-Com Satellite  Caldwell Partners

Significant diversification

The 3 months correlation between C-Com and Caldwell is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding C Com Satellite Systems and The Caldwell Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Caldwell Partners and C-Com Satellite 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 C Com Satellite Systems are associated (or correlated) with Caldwell Partners. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Caldwell Partners has no effect on the direction of C-Com Satellite i.e., C-Com Satellite and Caldwell Partners go up and down completely randomly.

Pair Corralation between C-Com Satellite and Caldwell Partners

Assuming the 90 days horizon C Com Satellite Systems is expected to generate 1.74 times more return on investment than Caldwell Partners. However, C-Com Satellite is 1.74 times more volatile than The Caldwell Partners. It trades about 0.01 of its potential returns per unit of risk. The Caldwell Partners is currently generating about -0.04 per unit of risk. If you would invest  69.00  in C Com Satellite Systems on July 24, 2025 and sell it today you would lose (2.00) from holding C Com Satellite Systems or give up 2.9% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

C Com Satellite Systems  vs.  The Caldwell Partners

C Com Satellite

Risk-Adjusted Performance

Weakest

Over the last 90 days C Com Satellite Systems has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, C-Com Satellite is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Caldwell Partners

Risk-Adjusted Performance

Weakest

Over the last 90 days The Caldwell Partners has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unsteady performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with C-Com Satellite and Caldwell Partners

The main advantage of trading using opposite C-Com Satellite and Caldwell Partners positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if C-Com Satellite position performs unexpectedly, Caldwell Partners 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 Caldwell Partners will offset losses from the drop in Caldwell Partners' long position.

The idea behind C Com Satellite Systems and The Caldwell Partners 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.