Correlation Between Comstock Capital and Stocksplus

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Comstock Capital and 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 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 Stocksplus Tr Short, you can compare the effects of market volatilities on Comstock Capital and 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 Stocksplus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Comstock Capital and Stocksplus.

Diversification Opportunities for Comstock Capital and Stocksplus

-0.3
  Correlation Coefficient

Very good diversification

The 3 months correlation between Comstock and Stocksplus is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding COMSTOCK CAPITAL VALUE and STOCKSPLUS TR SHORT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stocksplus Tr Short 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 Stocksplus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stocksplus Tr Short has no effect on the direction of Comstock Capital i.e., Comstock Capital and Stocksplus go up and down completely randomly.

Pair Corralation between Comstock Capital and Stocksplus

Assuming the 90 days horizon Comstock Capital Value is expected to generate 0.33 times more return on investment than Stocksplus. However, Comstock Capital Value is 3.01 times less risky than Stocksplus. It trades about 0.33 of its potential returns per unit of risk. Stocksplus Tr Short is currently generating about -0.18 per unit of risk. If you would invest  333.00  in Comstock Capital Value on December 29, 2023 and sell it today you would earn a total of  5.00  from holding Comstock Capital Value or generate 1.5% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

COMSTOCK CAPITAL VALUE  vs.  STOCKSPLUS TR SHORT

 Performance 
       Timeline  
Comstock Capital Value 

Risk-Adjusted Performance

2 of 100

 
Low
 
High
Very Weak
Compared to the overall equity markets, risk-adjusted returns on investments in Comstock Capital Value are ranked lower than 2 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong fundamental indicators, Comstock Capital is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Stocksplus Tr Short 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days Stocksplus Tr Short has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's forward indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Comstock Capital and Stocksplus Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Comstock Capital and Stocksplus

The main advantage of trading using opposite Comstock Capital and Stocksplus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Comstock Capital position performs unexpectedly, 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 Stocksplus will offset losses from the drop in Stocksplus' long position.
The idea behind Comstock Capital Value and Stocksplus Tr Short pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 AI Investment Finder module to use AI to screen and filter profitable investment opportunities.

Other Complementary Tools

Portfolio Analyzer
Portfolio analysis module that provides access to portfolio diagnostics and optimization engine
Economic Indicators
Top statistical indicators that provide insights into how an economy is performing
Portfolio Comparator
Compare the composition, asset allocations and performance of any two portfolios in your account
Equity Valuation
Check real value of public entities based on technical and fundamental data
Portfolio Center
All portfolio management and optimization tools to improve performance of your portfolios
Fundamental Analysis
View fundamental data based on most recent published financial statements
Money Flow Index
Determine momentum by analyzing Money Flow Index and other technical indicators