Correlation Between Link Real and Comstock Holding
Can any of the company-specific risk be diversified away by investing in both Link Real 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 Link Real and Comstock Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Link Real Estate and Comstock Holding Companies, you can compare the effects of market volatilities on Link Real 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 Link Real with a short position of Comstock Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Link Real and Comstock Holding.
Diversification Opportunities for Link Real and Comstock Holding
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Link and Comstock is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Link Real Estate 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 Link Real 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 Link Real Estate 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 Link Real i.e., Link Real and Comstock Holding go up and down completely randomly.
Pair Corralation between Link Real and Comstock Holding
Assuming the 90 days horizon Link Real is expected to generate 2.79 times less return on investment than Comstock Holding. But when comparing it to its historical volatility, Link Real Estate is 1.31 times less risky than Comstock Holding. It trades about 0.04 of its potential returns per unit of risk. Comstock Holding Companies is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 617.00 in Comstock Holding Companies on September 1, 2024 and sell it today you would earn a total of 199.00 from holding Comstock Holding Companies or generate 32.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Link Real Estate vs. Comstock Holding Companies
Performance |
| Timeline |
| Link Real Estate |
| Comstock Holding Com |
Link Real and Comstock Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Link Real and Comstock Holding
The main advantage of trading using opposite Link Real and Comstock Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Link Real 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.| Link Real vs. Kimco Realty | Link Real vs. Simon Property Group | Link Real vs. Saul Centers | Link Real vs. Kimco Realty |
| Comstock Holding vs. Arhaus Inc | Comstock Holding vs. Floor Decor Holdings | Comstock Holding vs. Haverty Furniture Companies | Comstock Holding vs. Kingfisher plc |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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