Correlation Between Ambev SA and Comstock Holding
Can any of the company-specific risk be diversified away by investing in both Ambev SA 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 Ambev SA and Comstock Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ambev SA ADR and Comstock Holding Companies, you can compare the effects of market volatilities on Ambev SA 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 Ambev SA with a short position of Comstock Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ambev SA and Comstock Holding.
Diversification Opportunities for Ambev SA and Comstock Holding
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Ambev and Comstock is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Ambev SA ADR 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 Ambev SA 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 Ambev SA ADR 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 Ambev SA i.e., Ambev SA and Comstock Holding go up and down completely randomly.
Pair Corralation between Ambev SA and Comstock Holding
Given the investment horizon of 90 days Ambev SA ADR is expected to generate 0.3 times more return on investment than Comstock Holding. However, Ambev SA ADR is 3.37 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 -0.36 per unit of risk. If you would invest 215.00 in Ambev SA ADR on September 2, 2024 and sell it today you would lose (3.00) from holding Ambev SA ADR or give up 1.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ambev SA ADR vs. Comstock Holding Companies
Performance |
| Timeline |
| Ambev SA ADR |
| Comstock Holding Com |
Ambev SA and Comstock Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ambev SA and Comstock Holding
The main advantage of trading using opposite Ambev SA and Comstock Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ambev SA 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.| Ambev SA vs. Compania Cervecerias Unidas | Ambev SA vs. Molson Coors Brewing | Ambev SA vs. Suntory Beverage Food | Ambev SA vs. Carlsberg AS |
| Comstock Holding vs. Arhaus Inc | Comstock Holding vs. Floor Decor Holdings | Comstock Holding vs. Haverty Furniture Companies | Comstock Holding vs. Kingfisher plc |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |