Correlation Between Comstock Holding and GAMESTOP
Can any of the company-specific risk be diversified away by investing in both Comstock Holding and GAMESTOP 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 GAMESTOP 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 GAMESTOP, you can compare the effects of market volatilities on Comstock Holding and GAMESTOP 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 GAMESTOP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Comstock Holding and GAMESTOP.
Diversification Opportunities for Comstock Holding and GAMESTOP
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Comstock and GAMESTOP is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Comstock Holding Companies and GAMESTOP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GAMESTOP 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 GAMESTOP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GAMESTOP has no effect on the direction of Comstock Holding i.e., Comstock Holding and GAMESTOP go up and down completely randomly.
Pair Corralation between Comstock Holding and GAMESTOP
Assuming the 90 days trading horizon Comstock Holding Companies is expected to under-perform the GAMESTOP. In addition to that, Comstock Holding is 1.04 times more volatile than GAMESTOP. It trades about -0.1 of its total potential returns per unit of risk. GAMESTOP is currently generating about 0.07 per unit of volatility. If you would invest 2,700 in GAMESTOP on September 21, 2024 and sell it today you would earn a total of 125.00 from holding GAMESTOP or generate 4.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Comstock Holding Companies vs. GAMESTOP
Performance |
| Timeline |
| Comstock Holding Com |
| GAMESTOP |
Comstock Holding and GAMESTOP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Comstock Holding and GAMESTOP
The main advantage of trading using opposite Comstock Holding and GAMESTOP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Comstock Holding position performs unexpectedly, GAMESTOP 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 GAMESTOP will offset losses from the drop in GAMESTOP's long position.| Comstock Holding vs. GAMESTOP | Comstock Holding vs. OURGAME INTHOLDL 00005 | Comstock Holding vs. HEALTHCARE REAL A | Comstock Holding vs. GUARDANT HEALTH CL |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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