Correlation Between Garmin and Comtech Telecommunicatio
Can any of the company-specific risk be diversified away by investing in both Garmin 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 Garmin and Comtech Telecommunicatio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Garmin and Comtech Telecommunications Corp, you can compare the effects of market volatilities on Garmin 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 Garmin with a short position of Comtech Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Garmin and Comtech Telecommunicatio.
Diversification Opportunities for Garmin and Comtech Telecommunicatio
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Garmin and Comtech is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Garmin and Comtech Telecommunications Cor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Comtech Telecommunicatio and Garmin 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 Garmin 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 Garmin i.e., Garmin and Comtech Telecommunicatio go up and down completely randomly.
Pair Corralation between Garmin and Comtech Telecommunicatio
Given the investment horizon of 90 days Garmin is expected to generate 0.31 times more return on investment than Comtech Telecommunicatio. However, Garmin is 3.21 times less risky than Comtech Telecommunicatio. It trades about 0.14 of its potential returns per unit of risk. Comtech Telecommunications Corp is currently generating about -0.03 per unit of risk. If you would invest 20,736 in Garmin on June 7, 2025 and sell it today you would earn a total of 2,955 from holding Garmin or generate 14.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Garmin vs. Comtech Telecommunications Cor
Performance |
| Timeline |
| Garmin |
| Comtech Telecommunicatio |
Garmin and Comtech Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Garmin and Comtech Telecommunicatio
The main advantage of trading using opposite Garmin and Comtech Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Garmin 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.| Garmin vs. Vontier Corp | Garmin vs. Teledyne Technologies Incorporated | Garmin vs. ESCO Technologies | Garmin vs. MKS Instruments |
| Comtech Telecommunicatio vs. ADTRAN Inc | Comtech Telecommunicatio vs. KVH Industries | Comtech Telecommunicatio vs. Telesat Corp | Comtech Telecommunicatio vs. Digi International |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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