Correlation Between Abcellera Biologics and Comstock Holding
Can any of the company-specific risk be diversified away by investing in both Abcellera Biologics and Comstock Holding 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 Abcellera Biologics and Comstock Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Abcellera Biologics and Comstock Holding Companies, you can compare the effects of market volatilities on Abcellera Biologics and Comstock Holding 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 Abcellera Biologics with a short position of Comstock Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Abcellera Biologics and Comstock Holding.
Diversification Opportunities for Abcellera Biologics and Comstock Holding
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Abcellera and Comstock is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Abcellera Biologics and Comstock Holding Companies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Comstock Holding Com and Abcellera Biologics 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 Abcellera Biologics are associated (or correlated) with Comstock Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Comstock Holding Com has no effect on the direction of Abcellera Biologics i.e., Abcellera Biologics and Comstock Holding go up and down completely randomly.
Pair Corralation between Abcellera Biologics and Comstock Holding
Given the investment horizon of 90 days Abcellera Biologics is expected to generate 1.42 times less return on investment than Comstock Holding. But when comparing it to its historical volatility, Abcellera Biologics is 1.26 times less risky than Comstock Holding. It trades about 0.05 of its potential returns per unit of risk. Comstock Holding Companies is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 809.00 in Comstock Holding Companies on September 12, 2024 and sell it today you would earn a total of 92.00 from holding Comstock Holding Companies or generate 11.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Abcellera Biologics vs. Comstock Holding Companies
Performance |
| Timeline |
| Abcellera Biologics |
| Comstock Holding Com |
Abcellera Biologics and Comstock Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Abcellera Biologics and Comstock Holding
The main advantage of trading using opposite Abcellera Biologics and Comstock Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Abcellera Biologics position performs unexpectedly, Comstock Holding 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 Comstock Holding will offset losses from the drop in Comstock Holding's long position.| Abcellera Biologics vs. Hepion Pharmaceuticals | Abcellera Biologics vs. Krystal Biotech | Abcellera Biologics vs. CureVac NV | Abcellera Biologics vs. Vir Biotechnology |
| Comstock Holding vs. Arhaus Inc | Comstock Holding vs. Floor Decor Holdings | Comstock Holding vs. Kingfisher plc | Comstock Holding vs. Haverty Furniture Companies |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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