Correlation Between Comstock Holding and Abcellera Biologics
Can any of the company-specific risk be diversified away by investing in both Comstock Holding and Abcellera Biologics 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 Holding and Abcellera Biologics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Comstock Holding Companies and Abcellera Biologics, you can compare the effects of market volatilities on Comstock Holding and Abcellera Biologics 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 Holding with a short position of Abcellera Biologics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Comstock Holding and Abcellera Biologics.
Diversification Opportunities for Comstock Holding and Abcellera Biologics
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Comstock and Abcellera is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Comstock Holding Companies and Abcellera Biologics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Abcellera Biologics and Comstock Holding 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 Holding Companies are associated (or correlated) with Abcellera Biologics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Abcellera Biologics has no effect on the direction of Comstock Holding i.e., Comstock Holding and Abcellera Biologics go up and down completely randomly.
Pair Corralation between Comstock Holding and Abcellera Biologics
Given the investment horizon of 90 days Comstock Holding Companies is expected to under-perform the Abcellera Biologics. In addition to that, Comstock Holding is 1.22 times more volatile than Abcellera Biologics. It trades about -0.05 of its total potential returns per unit of risk. Abcellera Biologics is currently generating about 0.01 per unit of volatility. If you would invest 296.00 in Abcellera Biologics on September 13, 2024 and sell it today you would lose (1.00) from holding Abcellera Biologics or give up 0.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Comstock Holding Companies vs. Abcellera Biologics
Performance |
| Timeline |
| Comstock Holding Com |
| Abcellera Biologics |
Comstock Holding and Abcellera Biologics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Comstock Holding and Abcellera Biologics
The main advantage of trading using opposite Comstock Holding and Abcellera Biologics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Comstock Holding position performs unexpectedly, Abcellera Biologics 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 Abcellera Biologics will offset losses from the drop in Abcellera Biologics' long position.| Comstock Holding vs. St Joe Company | Comstock Holding vs. Stratus Properties | Comstock Holding vs. Mitsui Fudosan Co | Comstock Holding vs. New World Development |
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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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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