Correlation Between Comstock Capital and Pimco Stocksplus
Can any of the company-specific risk be diversified away by investing in both Comstock Capital and Pimco Stocksplus 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 Comstock Capital and Pimco Stocksplus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Comstock Capital Value and Pimco Stocksplus Ar, you can compare the effects of market volatilities on Comstock Capital and Pimco Stocksplus 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 Comstock Capital with a short position of Pimco Stocksplus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Comstock Capital and Pimco Stocksplus.
Diversification Opportunities for Comstock Capital and Pimco Stocksplus
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Comstock and Pimco is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Comstock Capital Value and Pimco Stocksplus Ar in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pimco Stocksplus and Comstock Capital 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 Comstock Capital Value are associated (or correlated) with Pimco Stocksplus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pimco Stocksplus has no effect on the direction of Comstock Capital i.e., Comstock Capital and Pimco Stocksplus go up and down completely randomly.
Pair Corralation between Comstock Capital and Pimco Stocksplus
Assuming the 90 days horizon Comstock Capital Value is expected to under-perform the Pimco Stocksplus. But the mutual fund apears to be less risky and, when comparing its historical volatility, Comstock Capital Value is 2.45 times less risky than Pimco Stocksplus. The mutual fund trades about -0.18 of its potential returns per unit of risk. The Pimco Stocksplus Ar is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 668.00 in Pimco Stocksplus Ar on January 25, 2024 and sell it today you would earn a total of 22.00 from holding Pimco Stocksplus Ar or generate 3.29% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 95.45% |
Values | Daily Returns |
Comstock Capital Value vs. Pimco Stocksplus Ar
Performance |
Timeline |
Comstock Capital Value |
Pimco Stocksplus |
Comstock Capital and Pimco Stocksplus Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Comstock Capital and Pimco Stocksplus
The main advantage of trading using opposite Comstock Capital and Pimco Stocksplus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Comstock Capital position performs unexpectedly, Pimco Stocksplus 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 Pimco Stocksplus will offset losses from the drop in Pimco Stocksplus' long position.Comstock Capital vs. Stocksplus Tr Short | Comstock Capital vs. Federated Prudent Bear | Comstock Capital vs. Federated Prudent Bear | Comstock Capital vs. Pimco Stocksplus Ar |
Pimco Stocksplus vs. Stocksplus Tr Short | Pimco Stocksplus vs. Federated Prudent Bear | Pimco Stocksplus vs. Federated Prudent Bear | Pimco Stocksplus vs. Pimco Stocksplus Ar |
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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