Correlation Between GAMESTOP and Comstock Holding
Can any of the company-specific risk be diversified away by investing in both GAMESTOP and Comstock Holding 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 GAMESTOP and Comstock Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GAMESTOP and Comstock Holding Companies, you can compare the effects of market volatilities on GAMESTOP and Comstock Holding 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 GAMESTOP with a short position of Comstock Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of GAMESTOP and Comstock Holding.
Diversification Opportunities for GAMESTOP and Comstock Holding
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between GAMESTOP and Comstock is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding GAMESTOP and Comstock Holding Companies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Comstock Holding Com and GAMESTOP 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 GAMESTOP are associated (or correlated) with Comstock Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Comstock Holding Com has no effect on the direction of GAMESTOP i.e., GAMESTOP and Comstock Holding go up and down completely randomly.
Pair Corralation between GAMESTOP and Comstock Holding
Assuming the 90 days trading horizon GAMESTOP is expected to generate 0.96 times more return on investment than Comstock Holding. However, GAMESTOP is 1.05 times less risky than Comstock Holding. It trades about 0.05 of its potential returns per unit of risk. Comstock Holding Companies is currently generating about -0.08 per unit of risk. If you would invest 2,641 in GAMESTOP on September 22, 2024 and sell it today you would earn a total of 85.00 from holding GAMESTOP or generate 3.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GAMESTOP vs. Comstock Holding Companies
Performance |
| Timeline |
| GAMESTOP |
| Comstock Holding Com |
GAMESTOP and Comstock Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GAMESTOP and Comstock Holding
The main advantage of trading using opposite GAMESTOP and Comstock Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GAMESTOP position performs unexpectedly, Comstock Holding 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 Holding will offset losses from the drop in Comstock Holding's long position.The idea behind GAMESTOP and Comstock Holding Companies pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |