Correlation Between Comba Telecom and Extra Space

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

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

Diversification Opportunities for Comba Telecom and Extra Space

-0.13

Correlation Coefficient

Comba Telecom  Extra Space

Good diversification

The 3 months correlation between Comba and Extra is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Comba Telecom Systems and Extra Space Storage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Extra Space Storage and Comba Telecom 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 Comba Telecom Systems are associated (or correlated) with Extra Space. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Extra Space Storage has no effect on the direction of Comba Telecom i.e., Comba Telecom and Extra Space go up and down completely randomly.

Pair Corralation between Comba Telecom and Extra Space

Assuming the 90 days trading horizon Comba Telecom Systems is expected to generate 2.38 times more return on investment than Extra Space. However, Comba Telecom is 2.38 times more volatile than Extra Space Storage. It trades about 0.11 of its potential returns per unit of risk. Extra Space Storage is currently generating about 0.07 per unit of risk. If you would invest  16.00  in Comba Telecom Systems on April 25, 2025 and sell it today you would earn a total of  3.00  from holding Comba Telecom Systems or generate 18.75% return on investment over 90 days.

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

Comba Telecom Systems  vs.  Extra Space Storage

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 8 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, Comba Telecom unveiled solid returns over the last few months and may actually be approaching a breakup point.

Extra Space Storage

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Extra Space Storage are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Extra Space is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Comba Telecom and Extra Space

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

The idea behind Comba Telecom Systems and Extra Space Storage 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.