Correlation Between One Liberty and Comstock Holding
Can any of the company-specific risk be diversified away by investing in both One Liberty 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 One Liberty and Comstock Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between One Liberty Properties and Comstock Holding Companies, you can compare the effects of market volatilities on One Liberty 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 One Liberty with a short position of Comstock Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of One Liberty and Comstock Holding.
Diversification Opportunities for One Liberty and Comstock Holding
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between One and Comstock is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding One Liberty Properties 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 One Liberty 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 One Liberty Properties 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 One Liberty i.e., One Liberty and Comstock Holding go up and down completely randomly.
Pair Corralation between One Liberty and Comstock Holding
Considering the 90-day investment horizon One Liberty is expected to generate 1.93 times less return on investment than Comstock Holding. But when comparing it to its historical volatility, One Liberty Properties is 2.51 times less risky than Comstock Holding. It trades about 0.14 of its potential returns per unit of risk. Comstock Holding Companies is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 638.00 in Comstock Holding Companies on August 24, 2024 and sell it today you would earn a total of 326.00 from holding Comstock Holding Companies or generate 51.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
One Liberty Properties vs. Comstock Holding Companies
Performance |
| Timeline |
| One Liberty Properties |
| Comstock Holding Com |
One Liberty and Comstock Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with One Liberty and Comstock Holding
The main advantage of trading using opposite One Liberty and Comstock Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if One Liberty 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.| One Liberty vs. Generationome Properties | One Liberty vs. HUMANA INC | One Liberty vs. Aquagold International | One Liberty vs. Barloworld Ltd ADR |
| Comstock Holding vs. St Joe Company | Comstock Holding vs. Stratus Properties | Comstock Holding vs. HUMANA INC | Comstock Holding vs. Aquagold International |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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