Correlation Between Comtech Telecommunicatio and Exeo Entertainment
Can any of the company-specific risk be diversified away by investing in both Comtech Telecommunicatio and Exeo Entertainment 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 Exeo Entertainment 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 Exeo Entertainment, you can compare the effects of market volatilities on Comtech Telecommunicatio and Exeo Entertainment 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 Exeo Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Comtech Telecommunicatio and Exeo Entertainment.
Diversification Opportunities for Comtech Telecommunicatio and Exeo Entertainment
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Comtech and Exeo is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Comtech Telecommunications Cor and Exeo Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exeo Entertainment 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 Exeo Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exeo Entertainment has no effect on the direction of Comtech Telecommunicatio i.e., Comtech Telecommunicatio and Exeo Entertainment go up and down completely randomly.
Pair Corralation between Comtech Telecommunicatio and Exeo Entertainment
Given the investment horizon of 90 days Comtech Telecommunications Corp is expected to under-perform the Exeo Entertainment. But the stock apears to be less risky and, when comparing its historical volatility, Comtech Telecommunications Corp is 19.19 times less risky than Exeo Entertainment. The stock trades about -0.3 of its potential returns per unit of risk. The Exeo Entertainment is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 0.00 in Exeo Entertainment on January 26, 2024 and sell it today you would earn a total of 0.02 from holding Exeo Entertainment or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Comtech Telecommunications Cor vs. Exeo Entertainment
Performance |
| Timeline |
| Comtech Telecommunicatio |
| Exeo Entertainment |
Comtech Telecommunicatio and Exeo Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Comtech Telecommunicatio and Exeo Entertainment
The main advantage of trading using opposite Comtech Telecommunicatio and Exeo Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Comtech Telecommunicatio position performs unexpectedly, Exeo Entertainment 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 Exeo Entertainment will offset losses from the drop in Exeo Entertainment's long position.| Comtech Telecommunicatio vs. Aviat Networks | Comtech Telecommunicatio vs. Silicom | Comtech Telecommunicatio vs. Akoustis Technologies | Comtech Telecommunicatio vs. Gilat Satellite Networks |
| Exeo Entertainment vs. Rivian Automotive | Exeo Entertainment vs. Nio Class A | Exeo Entertainment vs. Xpeng Inc | Exeo Entertainment vs. Mullen Automotive |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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