Correlation Between CEOTRONICS and Comba Telecom

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

By analyzing existing cross correlation between CEOTRONICS and Comba Telecom Systems, you can compare the effects of market volatilities on CEOTRONICS and Comba Telecom 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 CEOTRONICS with a short position of Comba Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of CEOTRONICS and Comba Telecom.

Diversification Opportunities for CEOTRONICS and Comba Telecom

-0.4

Correlation Coefficient

CEOTRONICS  Comba Telecom

Very good diversification

The 3 months correlation between CEOTRONICS and Comba is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding CEOTRONICS and Comba Telecom Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Comba Telecom Systems and CEOTRONICS 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 CEOTRONICS are associated (or correlated) with Comba Telecom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Comba Telecom Systems has no effect on the direction of CEOTRONICS i.e., CEOTRONICS and Comba Telecom go up and down completely randomly.

Pair Corralation between CEOTRONICS and Comba Telecom

Assuming the 90 days trading horizon CEOTRONICS is expected to under-perform the Comba Telecom. In addition to that, CEOTRONICS is 1.38 times more volatile than Comba Telecom Systems. It trades about 0.0 of its total potential returns per unit of risk. Comba Telecom Systems is currently generating about 0.14 per unit of volatility. If you would invest  16.00  in Comba Telecom Systems on April 24, 2025 and sell it today you would earn a total of  4.00  from holding Comba Telecom Systems or generate 25.0% return on investment over 90 days.

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

CEOTRONICS  vs.  Comba Telecom Systems

CEOTRONICS

Risk-Adjusted Performance

Very Weak

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

Comba Telecom Systems

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Comba Telecom Systems are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Comba Telecom unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with CEOTRONICS and Comba Telecom

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

The idea behind CEOTRONICS and Comba Telecom Systems 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.