Correlation Between Ke Holdings and Comstock Mining
Can any of the company-specific risk be diversified away by investing in both Ke Holdings and Comstock Mining 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 Ke Holdings and Comstock Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ke Holdings and Comstock Mining, you can compare the effects of market volatilities on Ke Holdings and Comstock Mining 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 Ke Holdings with a short position of Comstock Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ke Holdings and Comstock Mining.
Diversification Opportunities for Ke Holdings and Comstock Mining
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BEKE and Comstock is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Ke Holdings and Comstock Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Comstock Mining and Ke Holdings 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 Ke Holdings are associated (or correlated) with Comstock Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Comstock Mining has no effect on the direction of Ke Holdings i.e., Ke Holdings and Comstock Mining go up and down completely randomly.
Pair Corralation between Ke Holdings and Comstock Mining
Given the investment horizon of 90 days Ke Holdings is expected to generate 0.61 times more return on investment than Comstock Mining. However, Ke Holdings is 1.64 times less risky than Comstock Mining. It trades about -0.2 of its potential returns per unit of risk. Comstock Mining is currently generating about -0.14 per unit of risk. If you would invest 2,208 in Ke Holdings on August 29, 2024 and sell it today you would lose (336.00) from holding Ke Holdings or give up 15.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ke Holdings vs. Comstock Mining
Performance |
| Timeline |
| Ke Holdings |
| Comstock Mining |
Ke Holdings and Comstock Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ke Holdings and Comstock Mining
The main advantage of trading using opposite Ke Holdings and Comstock Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ke Holdings position performs unexpectedly, Comstock Mining 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 Mining will offset losses from the drop in Comstock Mining's long position.| Ke Holdings vs. Marcus Millichap | Ke Holdings vs. Digitalbridge Group | Ke Holdings vs. Jones Lang LaSalle | Ke Holdings vs. CBRE Group Class |
| Comstock Mining vs. New England Realty | Comstock Mining vs. Marcus Millichap | Comstock Mining vs. FirstService Corp | Comstock Mining vs. Maui Land Pineapple |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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