Correlation Between Comtech Telecommunicatio and Wallbox NV

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

Diversification Opportunities for Comtech Telecommunicatio and Wallbox NV

0.23

Correlation Coefficient

Comtech Telecommunicatio  Wallbox NV

Modest diversification

The 3 months correlation between Comtech and Wallbox is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Comtech Telecommunications Cor and Wallbox NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wallbox NV 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 Wallbox NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wallbox NV has no effect on the direction of Comtech Telecommunicatio i.e., Comtech Telecommunicatio and Wallbox NV go up and down completely randomly.

Pair Corralation between Comtech Telecommunicatio and Wallbox NV

Given the investment horizon of 90 days Comtech Telecommunications Corp is expected to generate 0.83 times more return on investment than Wallbox NV. However, Comtech Telecommunications Corp is 1.21 times less risky than Wallbox NV. It trades about 0.18 of its potential returns per unit of risk. Wallbox NV is currently generating about 0.0 per unit of risk. If you would invest  201.00  in Comtech Telecommunications Corp on September 1, 2025 and sell it today you would earn a total of  105.00  from holding Comtech Telecommunications Corp or generate 52.24% return on investment over 90 days.

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

Comtech Telecommunications Cor  vs.  Wallbox NV

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 13 (%) of all global equities and portfolios over the last 90 days. Despite quite unsteady basic indicators, Comtech Telecommunicatio disclosed solid returns over the last few months and may actually be approaching a breakup point.

Wallbox NV

Risk-Adjusted Performance

Weakest

Over the last 90 days Wallbox NV has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong fundamental drivers, Wallbox NV is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Comtech Telecommunicatio and Wallbox NV

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

The idea behind Comtech Telecommunications Corp and Wallbox NV 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.

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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.