Correlation Between Comstock Resources and GeoPark
Can any of the company-specific risk be diversified away by investing in both Comstock Resources and GeoPark 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 GeoPark into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Comstock Resources and GeoPark, you can compare the effects of market volatilities on Comstock Resources and GeoPark 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 GeoPark. Check out your portfolio center. Please also check ongoing floating volatility patterns of Comstock Resources and GeoPark.
Diversification Opportunities for Comstock Resources and GeoPark
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Comstock and GeoPark is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Comstock Resources and GeoPark in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GeoPark 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 GeoPark. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GeoPark has no effect on the direction of Comstock Resources i.e., Comstock Resources and GeoPark go up and down completely randomly.
Pair Corralation between Comstock Resources and GeoPark
Considering the 90-day investment horizon Comstock Resources is expected to generate 1.04 times more return on investment than GeoPark. However, Comstock Resources is 1.04 times more volatile than GeoPark. It trades about -0.17 of its potential returns per unit of risk. GeoPark is currently generating about -0.38 per unit of risk. If you would invest 1,962 in Comstock Resources on November 9, 2024 and sell it today you would lose (201.00) from holding Comstock Resources or give up 10.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Comstock Resources vs. GeoPark
Performance |
| Timeline |
| Comstock Resources |
| GeoPark |
Comstock Resources and GeoPark Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Comstock Resources and GeoPark
The main advantage of trading using opposite Comstock Resources and GeoPark positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Comstock Resources position performs unexpectedly, GeoPark 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 GeoPark will offset losses from the drop in GeoPark's long position.| Comstock Resources vs. Range Resources Corp | Comstock Resources vs. Permian Resources | Comstock Resources vs. EQT Corporation | Comstock Resources vs. Vital Energy |
| GeoPark vs. Evolution Petroleum | GeoPark vs. Granite Ridge Resources | GeoPark vs. PHX Minerals | GeoPark vs. California Resources Corp |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |