Correlation Between Comstock Holding and Nordic Semiconductor
Can any of the company-specific risk be diversified away by investing in both Comstock Holding and Nordic Semiconductor 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 Nordic Semiconductor 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 Nordic Semiconductor ASA, you can compare the effects of market volatilities on Comstock Holding and Nordic Semiconductor 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 Nordic Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Comstock Holding and Nordic Semiconductor.
Diversification Opportunities for Comstock Holding and Nordic Semiconductor
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Comstock and Nordic is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Comstock Holding Companies and Nordic Semiconductor ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nordic Semiconductor ASA 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 Nordic Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nordic Semiconductor ASA has no effect on the direction of Comstock Holding i.e., Comstock Holding and Nordic Semiconductor go up and down completely randomly.
Pair Corralation between Comstock Holding and Nordic Semiconductor
Assuming the 90 days trading horizon Comstock Holding Companies is expected to under-perform the Nordic Semiconductor. In addition to that, Comstock Holding is 2.64 times more volatile than Nordic Semiconductor ASA. It trades about -0.08 of its total potential returns per unit of risk. Nordic Semiconductor ASA is currently generating about 0.06 per unit of volatility. If you would invest 842.00 in Nordic Semiconductor ASA on September 19, 2024 and sell it today you would earn a total of 19.00 from holding Nordic Semiconductor ASA or generate 2.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Comstock Holding Companies vs. Nordic Semiconductor ASA
Performance |
| Timeline |
| Comstock Holding Com |
| Nordic Semiconductor ASA |
Comstock Holding and Nordic Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Comstock Holding and Nordic Semiconductor
The main advantage of trading using opposite Comstock Holding and Nordic Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Comstock Holding position performs unexpectedly, Nordic Semiconductor 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 Nordic Semiconductor will offset losses from the drop in Nordic Semiconductor's long position.| Comstock Holding vs. GRUPO CARSO A1 | Comstock Holding vs. Elmos Semiconductor SE | Comstock Holding vs. Carsales | Comstock Holding vs. 24SEVENOFFICE GROUP AB |
| Nordic Semiconductor vs. Taiwan Semiconductor Manufacturing | Nordic Semiconductor vs. Broadcom | Nordic Semiconductor vs. Superior Plus Corp | Nordic Semiconductor vs. Norsk Hydro ASA |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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