Correlation Between Greenfire Resources and Comstock Resources
Can any of the company-specific risk be diversified away by investing in both Greenfire Resources and Comstock Resources 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 Greenfire Resources and Comstock Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Greenfire Resources and Comstock Resources, you can compare the effects of market volatilities on Greenfire Resources and Comstock Resources 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 Greenfire Resources with a short position of Comstock Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greenfire Resources and Comstock Resources.
Diversification Opportunities for Greenfire Resources and Comstock Resources
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Greenfire and Comstock is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Greenfire Resources and Comstock Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Comstock Resources and Greenfire 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 Greenfire Resources are associated (or correlated) with Comstock Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Comstock Resources has no effect on the direction of Greenfire Resources i.e., Greenfire Resources and Comstock Resources go up and down completely randomly.
Pair Corralation between Greenfire Resources and Comstock Resources
Considering the 90-day investment horizon Greenfire Resources is expected to under-perform the Comstock Resources. But the stock apears to be less risky and, when comparing its historical volatility, Greenfire Resources is 1.06 times less risky than Comstock Resources. The stock trades about -0.01 of its potential returns per unit of risk. The Comstock Resources is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,391 in Comstock Resources on September 14, 2024 and sell it today you would earn a total of 336.50 from holding Comstock Resources or generate 24.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Greenfire Resources vs. Comstock Resources
Performance |
| Timeline |
| Greenfire Resources |
| Comstock Resources |
Greenfire Resources and Comstock Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Greenfire Resources and Comstock Resources
The main advantage of trading using opposite Greenfire Resources and Comstock Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greenfire Resources position performs unexpectedly, Comstock Resources 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 Comstock Resources will offset losses from the drop in Comstock Resources' long position.| Greenfire Resources vs. Evolution Petroleum | Greenfire Resources vs. Ring Energy | Greenfire Resources vs. Gran Tierra Energy | Greenfire Resources vs. Permian Resources |
| Comstock Resources vs. Range Resources Corp | Comstock Resources vs. Permian Resources | Comstock Resources vs. EQT Corporation | Comstock Resources vs. Vital 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.
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