Correlation Between Comtech Telecommunicatio and Interlink Electronics

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

Diversification Opportunities for Comtech Telecommunicatio and Interlink Electronics

-0.08

Correlation Coefficient

Comtech Telecommunicatio  Interlink Electronics

Good diversification

The 3 months correlation between Comtech and Interlink is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Comtech Telecommunications Cor and Interlink Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Interlink Electronics 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 Interlink Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Interlink Electronics has no effect on the direction of Comtech Telecommunicatio i.e., Comtech Telecommunicatio and Interlink Electronics go up and down completely randomly.

Pair Corralation between Comtech Telecommunicatio and Interlink Electronics

Given the investment horizon of 90 days Comtech Telecommunications Corp is expected to generate 0.56 times more return on investment than Interlink Electronics. However, Comtech Telecommunications Corp is 1.79 times less risky than Interlink Electronics. It trades about 0.18 of its potential returns per unit of risk. Interlink Electronics is currently generating about -0.03 per unit of risk. If you would invest  197.00  in Comtech Telecommunications Corp on August 26, 2025 and sell it today you would earn a total of  104.00  from holding Comtech Telecommunications Corp or generate 52.79% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	96.88%
Values	Daily Returns

Comtech Telecommunications Cor  vs.  Interlink Electronics

Comtech Telecommunicatio

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Comtech Telecommunications Corp are ranked lower than 14 (%) 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.

Interlink Electronics

Risk-Adjusted Performance

Weakest

Over the last 90 days Interlink Electronics has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in December 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Comtech Telecommunicatio and Interlink Electronics

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

The idea behind Comtech Telecommunications Corp and Interlink Electronics 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.