Correlation Between Comstock Holding and SNDL
Can any of the company-specific risk be diversified away by investing in both Comstock Holding and SNDL 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 SNDL 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 SNDL Inc, you can compare the effects of market volatilities on Comstock Holding and SNDL 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 SNDL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Comstock Holding and SNDL.
Diversification Opportunities for Comstock Holding and SNDL
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Comstock and SNDL is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Comstock Holding Companies and SNDL Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SNDL Inc 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 SNDL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SNDL Inc has no effect on the direction of Comstock Holding i.e., Comstock Holding and SNDL go up and down completely randomly.
Pair Corralation between Comstock Holding and SNDL
Given the investment horizon of 90 days Comstock Holding Companies is expected to under-perform the SNDL. In addition to that, Comstock Holding is 1.03 times more volatile than SNDL Inc. It trades about -0.36 of its total potential returns per unit of risk. SNDL Inc is currently generating about -0.08 per unit of volatility. If you would invest 211.00 in SNDL Inc on September 2, 2024 and sell it today you would lose (18.00) from holding SNDL Inc or give up 8.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Comstock Holding Companies vs. SNDL Inc
Performance |
| Timeline |
| Comstock Holding Com |
| SNDL Inc |
Comstock Holding and SNDL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Comstock Holding and SNDL
The main advantage of trading using opposite Comstock Holding and SNDL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Comstock Holding position performs unexpectedly, SNDL 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 SNDL will offset losses from the drop in SNDL's long position.| 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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