Correlation Between Comstock Resources and Earthstone Energy
Can any of the company-specific risk be diversified away by investing in both Comstock Resources and Earthstone Energy 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 Resources and Earthstone Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Comstock Resources and Earthstone Energy, you can compare the effects of market volatilities on Comstock Resources and Earthstone Energy 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 Resources with a short position of Earthstone Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Comstock Resources and Earthstone Energy.
Diversification Opportunities for Comstock Resources and Earthstone Energy
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Comstock and Earthstone is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Comstock Resources and Earthstone Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Earthstone Energy and Comstock Resources 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 Resources are associated (or correlated) with Earthstone Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Earthstone Energy has no effect on the direction of Comstock Resources i.e., Comstock Resources and Earthstone Energy go up and down completely randomly.
Pair Corralation between Comstock Resources and Earthstone Energy
If you would invest 1,158 in Comstock Resources on August 24, 2024 and sell it today you would earn a total of 365.00 from holding Comstock Resources or generate 31.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.35% |
| Values | Daily Returns |
Comstock Resources vs. Earthstone Energy
Performance |
| Timeline |
| Comstock Resources |
| Earthstone Energy |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Comstock Resources and Earthstone Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Comstock Resources and Earthstone Energy
The main advantage of trading using opposite Comstock Resources and Earthstone Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Comstock Resources position performs unexpectedly, Earthstone Energy 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 Earthstone Energy will offset losses from the drop in Earthstone Energy's long position.| Comstock Resources vs. Range Resources Corp | Comstock Resources vs. Permian Resources | Comstock Resources vs. EQT Corporation | Comstock Resources vs. Vital Energy |
| Earthstone Energy vs. Vital Energy | Earthstone Energy vs. Comstock Resources | Earthstone Energy vs. Magnolia Oil Gas | Earthstone Energy vs. Obsidian Energy |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |