Correlation Between Comstock Holding and Apple
Can any of the company-specific risk be diversified away by investing in both Comstock Holding and Apple 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 Apple 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 Apple Inc, you can compare the effects of market volatilities on Comstock Holding and Apple 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 Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of Comstock Holding and Apple.
Diversification Opportunities for Comstock Holding and Apple
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Comstock and Apple is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Comstock Holding Companies and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple 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 Apple. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apple Inc has no effect on the direction of Comstock Holding i.e., Comstock Holding and Apple go up and down completely randomly.
Pair Corralation between Comstock Holding and Apple
Assuming the 90 days trading horizon Comstock Holding Companies is expected to under-perform the Apple. In addition to that, Comstock Holding is 2.38 times more volatile than Apple Inc. It trades about -0.26 of its total potential returns per unit of risk. Apple Inc is currently generating about -0.02 per unit of volatility. If you would invest 22,331 in Apple Inc on December 8, 2024 and sell it today you would lose (166.00) from holding Apple Inc or give up 0.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Comstock Holding Companies vs. Apple Inc
Performance |
| Timeline |
| Comstock Holding Com |
| Apple Inc |
Comstock Holding and Apple Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Comstock Holding and Apple
The main advantage of trading using opposite Comstock Holding and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Comstock Holding position performs unexpectedly, Apple 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 Apple will offset losses from the drop in Apple's long position.| Comstock Holding vs. Discover Financial Services | Comstock Holding vs. Jacquet Metal Service | Comstock Holding vs. CHIBA BANK | Comstock Holding vs. REVO INSURANCE SPA |
| Apple vs. Virtu Financial | Apple vs. GungHo Online Entertainment | Apple vs. Geely Automobile Holdings | Apple vs. Direct Line Insurance |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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