Correlation Between KENNAMETAL INC and Comstock Holding
Can any of the company-specific risk be diversified away by investing in both KENNAMETAL INC 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 KENNAMETAL INC and Comstock Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KENNAMETAL INC and Comstock Holding Companies, you can compare the effects of market volatilities on KENNAMETAL INC 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 KENNAMETAL INC with a short position of Comstock Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of KENNAMETAL INC and Comstock Holding.
Diversification Opportunities for KENNAMETAL INC and Comstock Holding
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between KENNAMETAL and Comstock is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding KENNAMETAL INC 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 KENNAMETAL INC 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 KENNAMETAL INC 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 KENNAMETAL INC i.e., KENNAMETAL INC and Comstock Holding go up and down completely randomly.
Pair Corralation between KENNAMETAL INC and Comstock Holding
If you would invest 2,125 in KENNAMETAL INC on September 26, 2024 and sell it today you would earn a total of 215.00 from holding KENNAMETAL INC or generate 10.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.0% |
| Values | Daily Returns |
KENNAMETAL INC vs. Comstock Holding Companies
Performance |
| Timeline |
| KENNAMETAL INC |
| Comstock Holding Com |
KENNAMETAL INC and Comstock Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KENNAMETAL INC and Comstock Holding
The main advantage of trading using opposite KENNAMETAL INC and Comstock Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KENNAMETAL INC 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.| KENNAMETAL INC vs. Titan Machinery | KENNAMETAL INC vs. INVITATION HOMES DL | KENNAMETAL INC vs. TITAN MACHINERY | KENNAMETAL INC vs. LANDSEA HOMES P |
| Comstock Holding vs. SIMS METAL MGT | Comstock Holding vs. United Utilities Group | Comstock Holding vs. Evolution Mining Limited | Comstock Holding vs. Aluminum of |
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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