Correlation Between Comtech Telecommunicatio and Renaissancere Holdings
Can any of the company-specific risk be diversified away by investing in both Comtech Telecommunicatio and Renaissancere Holdings 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 Renaissancere Holdings 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 Renaissancere Holdings, you can compare the effects of market volatilities on Comtech Telecommunicatio and Renaissancere Holdings 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 Renaissancere Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Comtech Telecommunicatio and Renaissancere Holdings.
Diversification Opportunities for Comtech Telecommunicatio and Renaissancere Holdings
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Comtech and Renaissancere is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Comtech Telecommunications Cor and Renaissancere Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Renaissancere Holdings 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 Renaissancere Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Renaissancere Holdings has no effect on the direction of Comtech Telecommunicatio i.e., Comtech Telecommunicatio and Renaissancere Holdings go up and down completely randomly.
Pair Corralation between Comtech Telecommunicatio and Renaissancere Holdings
Given the investment horizon of 90 days Comtech Telecommunications Corp is expected to generate 3.69 times more return on investment than Renaissancere Holdings. However, Comtech Telecommunicatio is 3.69 times more volatile than Renaissancere Holdings. It trades about 0.04 of its potential returns per unit of risk. Renaissancere Holdings is currently generating about 0.01 per unit of risk. If you would invest 330.00 in Comtech Telecommunications Corp on September 11, 2025 and sell it today you would earn a total of 23.00 from holding Comtech Telecommunications Corp or generate 6.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Comtech Telecommunications Cor vs. Renaissancere Holdings
Performance |
| Timeline |
| Comtech Telecommunicatio |
| Renaissancere Holdings |
Comtech Telecommunicatio and Renaissancere Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Comtech Telecommunicatio and Renaissancere Holdings
The main advantage of trading using opposite Comtech Telecommunicatio and Renaissancere Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Comtech Telecommunicatio position performs unexpectedly, Renaissancere Holdings 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 Renaissancere Holdings will offset losses from the drop in Renaissancere Holdings' long position.| Comtech Telecommunicatio vs. Silicom | Comtech Telecommunicatio vs. Amplitech Group | Comtech Telecommunicatio vs. Cambium Networks Corp | Comtech Telecommunicatio vs. Velo3D, |
| Renaissancere Holdings vs. Reinsurance Group of | Renaissancere Holdings vs. Aegon NV ADR | Renaissancere Holdings vs. Everest Group | Renaissancere Holdings vs. Unum Group |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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