Correlation Between Apple and Comstock Holding
Can any of the company-specific risk be diversified away by investing in both Apple 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 Apple and Comstock Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apple Inc and Comstock Holding Companies, you can compare the effects of market volatilities on Apple 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 Apple with a short position of Comstock Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and Comstock Holding.
Diversification Opportunities for Apple and Comstock Holding
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Apple and Comstock is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc 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 Apple 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 Apple Inc 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 Apple i.e., Apple and Comstock Holding go up and down completely randomly.
Pair Corralation between Apple and Comstock Holding
Assuming the 90 days trading horizon Apple Inc is expected to generate 0.19 times more return on investment than Comstock Holding. However, Apple Inc is 5.3 times less risky than Comstock Holding. It trades about 0.66 of its potential returns per unit of risk. Comstock Holding Companies is currently generating about -0.12 per unit of risk. If you would invest 22,085 in Apple Inc on September 25, 2024 and sell it today you would earn a total of 2,415 from holding Apple Inc or generate 10.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apple Inc vs. Comstock Holding Companies
Performance |
| Timeline |
| Apple Inc |
| Comstock Holding Com |
Apple and Comstock Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apple and Comstock Holding
The main advantage of trading using opposite Apple and Comstock Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple 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.The idea behind Apple Inc and Comstock Holding Companies 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.| Comstock Holding vs. Apple Inc | Comstock Holding vs. Apple Inc | Comstock Holding vs. Apple Inc | Comstock Holding vs. Apple Inc |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |