Correlation Between Comstock Holding and SCHMID Group
Can any of the company-specific risk be diversified away by investing in both Comstock Holding and SCHMID Group 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 SCHMID Group 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 SCHMID Group NV, you can compare the effects of market volatilities on Comstock Holding and SCHMID Group 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 SCHMID Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Comstock Holding and SCHMID Group.
Diversification Opportunities for Comstock Holding and SCHMID Group
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Comstock and SCHMID is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Comstock Holding Companies and SCHMID Group NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SCHMID Group NV 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 SCHMID Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SCHMID Group NV has no effect on the direction of Comstock Holding i.e., Comstock Holding and SCHMID Group go up and down completely randomly.
Pair Corralation between Comstock Holding and SCHMID Group
Given the investment horizon of 90 days Comstock Holding Companies is expected to under-perform the SCHMID Group. But the stock apears to be less risky and, when comparing its historical volatility, Comstock Holding Companies is 2.94 times less risky than SCHMID Group. The stock trades about -0.37 of its potential returns per unit of risk. The SCHMID Group NV is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 23.00 in SCHMID Group NV on August 30, 2024 and sell it today you would lose (1.00) from holding SCHMID Group NV or give up 4.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 82.61% |
| Values | Daily Returns |
Comstock Holding Companies vs. SCHMID Group NV
Performance |
| Timeline |
| Comstock Holding Com |
| SCHMID Group NV |
Comstock Holding and SCHMID Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Comstock Holding and SCHMID Group
The main advantage of trading using opposite Comstock Holding and SCHMID Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Comstock Holding position performs unexpectedly, SCHMID Group 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 SCHMID Group will offset losses from the drop in SCHMID Group's 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 |
| SCHMID Group vs. BBB Foods | SCHMID Group vs. Global Ship Lease | SCHMID Group vs. United Rentals | SCHMID Group vs. NH Foods Ltd |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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