Correlation Between Quantum and Comtech Telecommunicatio

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

By analyzing existing cross correlation between Quantum and Comtech Telecommunications Corp, you can compare the effects of market volatilities on Quantum and Comtech Telecommunicatio 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 Quantum with a short position of Comtech Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Quantum and Comtech Telecommunicatio.

Diversification Opportunities for Quantum and Comtech Telecommunicatio

-0.5

Correlation Coefficient

Quantum  Comtech Telecommunicatio

Very good diversification

The 3 months correlation between Quantum and Comtech is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Quantum and Comtech Telecommunications Cor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Comtech Telecommunicatio and Quantum 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 Quantum are associated (or correlated) with Comtech Telecommunicatio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Comtech Telecommunicatio has no effect on the direction of Quantum i.e., Quantum and Comtech Telecommunicatio go up and down completely randomly.

Pair Corralation between Quantum and Comtech Telecommunicatio

Given the investment horizon of 90 days Quantum is expected to under-perform the Comtech Telecommunicatio. In addition to that, Quantum is 1.08 times more volatile than Comtech Telecommunications Corp. It trades about -0.06 of its total potential returns per unit of risk. Comtech Telecommunications Corp is currently generating about 0.12 per unit of volatility. 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	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Quantum  vs.  Comtech Telecommunications Cor

Quantum

Risk-Adjusted Performance

Very Weak

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

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.

Pair Trading with Quantum and Comtech Telecommunicatio

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

The idea behind Quantum and Comtech Telecommunications Corp 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .