Correlation Between SHIN-ETSU CHEMICAL and Comtech Telecommunicatio
Can any of the company-specific risk be diversified away by investing in both SHIN-ETSU CHEMICAL 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 SHIN-ETSU CHEMICAL and Comtech Telecommunicatio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SHIN ETSU CHEMICAL and Comtech Telecommunications Corp, you can compare the effects of market volatilities on SHIN-ETSU CHEMICAL 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 SHIN-ETSU CHEMICAL with a short position of Comtech Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of SHIN-ETSU CHEMICAL and Comtech Telecommunicatio.
Diversification Opportunities for SHIN-ETSU CHEMICAL and Comtech Telecommunicatio
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between SHIN-ETSU and Comtech is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding SHIN ETSU CHEMICAL and Comtech Telecommunications Cor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Comtech Telecommunicatio and SHIN-ETSU CHEMICAL 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 SHIN ETSU CHEMICAL 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 SHIN-ETSU CHEMICAL i.e., SHIN-ETSU CHEMICAL and Comtech Telecommunicatio go up and down completely randomly.
Pair Corralation between SHIN-ETSU CHEMICAL and Comtech Telecommunicatio
Assuming the 90 days trading horizon SHIN-ETSU CHEMICAL is expected to generate 77.11 times less return on investment than Comtech Telecommunicatio. But when comparing it to its historical volatility, SHIN ETSU CHEMICAL is 2.8 times less risky than Comtech Telecommunicatio. It trades about 0.01 of its potential returns per unit of risk. Comtech Telecommunications Corp is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 165.00 in Comtech Telecommunications Corp on September 1, 2025 and sell it today you would earn a total of 93.00 from holding Comtech Telecommunications Corp or generate 56.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SHIN ETSU CHEMICAL vs. Comtech Telecommunications Cor
Performance |
| Timeline |
| SHIN ETSU CHEMICAL |
| Comtech Telecommunicatio |
SHIN-ETSU CHEMICAL and Comtech Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SHIN-ETSU CHEMICAL and Comtech Telecommunicatio
The main advantage of trading using opposite SHIN-ETSU CHEMICAL and Comtech Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SHIN-ETSU CHEMICAL 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.| SHIN-ETSU CHEMICAL vs. Samsung Electronics Co | SHIN-ETSU CHEMICAL vs. DFS Furniture PLC | SHIN-ETSU CHEMICAL vs. Benchmark Electronics | SHIN-ETSU CHEMICAL vs. Meritage Homes |
| Comtech Telecommunicatio vs. Apple Inc | Comtech Telecommunicatio vs. Apple Inc | Comtech Telecommunicatio vs. Apple Inc | Comtech Telecommunicatio vs. Apple Inc |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |