Correlation Between Comstock Capital and Pimco Stocksplus

By analyzing existing cross correlation between Comstock Capital Value and Pimco Stocksplus Short, 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.

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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.

Diversification Opportunities for Comstock Capital and Pimco Stocksplus

0.68
  Correlation Coefficient
Comstock Capital Value
Pimco Stocksplus Short

Poor diversification

The 3 months correlation between Comstock and Pimco is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Comstock Capital Value and Pimco Stocksplus Short in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Pimco Stocksplus 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 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 Short 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 11.66 times less risky than Pimco Stocksplus. The mutual fund trades about -0.22 of its potential returns per unit of risk. The Pimco Stocksplus Short is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  868.00  in Pimco Stocksplus Short on June 28, 2021 and sell it today you would earn a total of  12.00  from holding Pimco Stocksplus Short or generate 1.38% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Comstock Capital Value  vs.  Pimco Stocksplus Short

 Performance (%) 
      Timeline 
Comstock Capital Value 
 Comstock Performance
0 of 100
Over the last 90 days Comstock Capital Value has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Comstock Capital is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Pimco Stocksplus Short 
 Pimco Performance
0 of 100
Over the last 90 days Pimco Stocksplus Short has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong forward indicators, Pimco Stocksplus is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

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.
The idea behind Comstock Capital Value and Pimco Stocksplus 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 Equity Search module to search for activelly traded equities including funds and ETFs from over 30 global markets.

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