Correlation Between Comtech Telecommunicatio and Vishay Intertechnology
Can any of the company-specific risk be diversified away by investing in both Comtech Telecommunicatio and Vishay Intertechnology 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 Vishay Intertechnology 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 Vishay Intertechnology, you can compare the effects of market volatilities on Comtech Telecommunicatio and Vishay Intertechnology 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 Vishay Intertechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Comtech Telecommunicatio and Vishay Intertechnology.
Diversification Opportunities for Comtech Telecommunicatio and Vishay Intertechnology
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Comtech and Vishay is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Comtech Telecommunications Cor and Vishay Intertechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vishay Intertechnology 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 Vishay Intertechnology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vishay Intertechnology has no effect on the direction of Comtech Telecommunicatio i.e., Comtech Telecommunicatio and Vishay Intertechnology go up and down completely randomly.
Pair Corralation between Comtech Telecommunicatio and Vishay Intertechnology
Given the investment horizon of 90 days Comtech Telecommunications Corp is expected to under-perform the Vishay Intertechnology. In addition to that, Comtech Telecommunicatio is 1.75 times more volatile than Vishay Intertechnology. It trades about -0.01 of its total potential returns per unit of risk. Vishay Intertechnology is currently generating about 0.02 per unit of volatility. If you would invest 1,550 in Vishay Intertechnology on June 9, 2025 and sell it today you would earn a total of 6.00 from holding Vishay Intertechnology or generate 0.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Comtech Telecommunications Cor vs. Vishay Intertechnology
Performance |
| Timeline |
| Comtech Telecommunicatio |
| Vishay Intertechnology |
Comtech Telecommunicatio and Vishay Intertechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Comtech Telecommunicatio and Vishay Intertechnology
The main advantage of trading using opposite Comtech Telecommunicatio and Vishay Intertechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Comtech Telecommunicatio position performs unexpectedly, Vishay Intertechnology 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 Vishay Intertechnology will offset losses from the drop in Vishay Intertechnology's long position.| Comtech Telecommunicatio vs. ADTRAN Inc | Comtech Telecommunicatio vs. KVH Industries | Comtech Telecommunicatio vs. Telesat Corp | Comtech Telecommunicatio vs. Digi International |
| Vishay Intertechnology vs. Silicon Laboratories | Vishay Intertechnology vs. Diodes Incorporated | Vishay Intertechnology vs. MACOM Technology Solutions | Vishay Intertechnology vs. FormFactor |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |