Correlation Between SOCKET MOBILE and Comtech Telecommunicatio

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

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

Diversification Opportunities for SOCKET MOBILE and Comtech Telecommunicatio

-0.53

Correlation Coefficient

SOCKET MOBILE  Comtech Telecommunicatio

Excellent diversification

The 3 months correlation between SOCKET and Comtech is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding SOCKET MOBILE NEW and Comtech Telecommunications Cor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Comtech Telecommunicatio and SOCKET MOBILE 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 SOCKET MOBILE NEW 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 SOCKET MOBILE i.e., SOCKET MOBILE and Comtech Telecommunicatio go up and down completely randomly.

Pair Corralation between SOCKET MOBILE and Comtech Telecommunicatio

Assuming the 90 days trading horizon SOCKET MOBILE NEW is expected to under-perform the Comtech Telecommunicatio. But the stock apears to be less risky and, when comparing its historical volatility, SOCKET MOBILE NEW is 2.02 times less risky than Comtech Telecommunicatio. The stock trades about -0.01 of its potential returns per unit of risk. The 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 22, 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 Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

SOCKET MOBILE NEW  vs.  Comtech Telecommunications Cor

SOCKET MOBILE NEW

Risk-Adjusted Performance

Very Weak

Over the last 90 days SOCKET MOBILE NEW has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable fundamental drivers, SOCKET MOBILE is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

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

Pair Trading with SOCKET MOBILE and Comtech Telecommunicatio

The main advantage of trading using opposite SOCKET MOBILE and Comtech Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SOCKET MOBILE 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 SOCKET MOBILE NEW 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.