Correlation Between Interlink Electronics and Comtech Telecommunicatio

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

By analyzing existing cross correlation between Interlink Electronics and Comtech Telecommunications Corp, you can compare the effects of market volatilities on Interlink Electronics 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 Interlink Electronics with a short position of Comtech Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Interlink Electronics and Comtech Telecommunicatio.

Diversification Opportunities for Interlink Electronics and Comtech Telecommunicatio

-0.05

Correlation Coefficient

Interlink Electronics  Comtech Telecommunicatio

Good diversification

The 3 months correlation between Interlink and Comtech is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Interlink Electronics and Comtech Telecommunications Cor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Comtech Telecommunicatio and Interlink Electronics 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 Interlink Electronics 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 Interlink Electronics i.e., Interlink Electronics and Comtech Telecommunicatio go up and down completely randomly.

Pair Corralation between Interlink Electronics and Comtech Telecommunicatio

Given the investment horizon of 90 days Interlink Electronics is expected to under-perform the Comtech Telecommunicatio. In addition to that, Interlink Electronics is 1.79 times more volatile than Comtech Telecommunications Corp. It trades about -0.03 of its total potential returns per unit of risk. Comtech Telecommunications Corp is currently generating about 0.18 per unit of volatility. 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

Interlink Electronics  vs.  Comtech Telecommunications Cor

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.

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 weak basic indicators, Comtech Telecommunicatio disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Interlink Electronics and Comtech Telecommunicatio

The main advantage of trading using opposite Interlink Electronics and Comtech Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Interlink Electronics 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.

The idea behind Interlink Electronics and Comtech Telecommunications Corp 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.