Correlation Between Xtrackers LevDAX and Comtech Telecommunicatio
Can any of the company-specific risk be diversified away by investing in both Xtrackers LevDAX and Comtech Telecommunicatio 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 Xtrackers LevDAX and Comtech Telecommunicatio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xtrackers LevDAX and Comtech Telecommunications Corp, you can compare the effects of market volatilities on Xtrackers LevDAX and Comtech Telecommunicatio 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 Xtrackers LevDAX with a short position of Comtech Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers LevDAX and Comtech Telecommunicatio.
Diversification Opportunities for Xtrackers LevDAX and Comtech Telecommunicatio
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xtrackers and Comtech is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers LevDAX and Comtech Telecommunications Cor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Comtech Telecommunicatio and Xtrackers LevDAX 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 Xtrackers LevDAX are associated (or correlated) with Comtech Telecommunicatio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Comtech Telecommunicatio has no effect on the direction of Xtrackers LevDAX i.e., Xtrackers LevDAX and Comtech Telecommunicatio go up and down completely randomly.
Pair Corralation between Xtrackers LevDAX and Comtech Telecommunicatio
Assuming the 90 days trading horizon Xtrackers LevDAX is expected to generate 3.03 times less return on investment than Comtech Telecommunicatio. But when comparing it to its historical volatility, Xtrackers LevDAX is 3.35 times less risky than Comtech Telecommunicatio. It trades about 0.22 of its potential returns per unit of risk. Comtech Telecommunications Corp is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 112.00 in Comtech Telecommunications Corp on April 21, 2025 and sell it today you would earn a total of 100.00 from holding Comtech Telecommunications Corp or generate 89.29% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Xtrackers LevDAX vs. Comtech Telecommunications Cor
Performance |
Timeline |
Xtrackers LevDAX |
Comtech Telecommunicatio |
Xtrackers LevDAX and Comtech Telecommunicatio Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Xtrackers LevDAX and Comtech Telecommunicatio
The main advantage of trading using opposite Xtrackers LevDAX and Comtech Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers LevDAX position performs unexpectedly, Comtech Telecommunicatio 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 Comtech Telecommunicatio will offset losses from the drop in Comtech Telecommunicatio's long position.Xtrackers LevDAX vs. Xtrackers II Global | Xtrackers LevDAX vs. Xtrackers FTSE | Xtrackers LevDAX vs. Xtrackers SP 500 | Xtrackers LevDAX vs. Xtrackers MSCI |
Comtech Telecommunicatio vs. Apple Inc | Comtech Telecommunicatio vs. Apple Inc | Comtech Telecommunicatio vs. Apple Inc | Comtech Telecommunicatio vs. Apple Inc |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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