Correlation Between PEDEVCO Corp and Comstock Resources

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both PEDEVCO Corp 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 PEDEVCO Corp and Comstock Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PEDEVCO Corp and Comstock Resources, you can compare the effects of market volatilities on PEDEVCO Corp 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 PEDEVCO Corp with a short position of Comstock Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of PEDEVCO Corp and Comstock Resources.

Diversification Opportunities for PEDEVCO Corp and Comstock Resources

PEDEVCOComstockDiversified AwayPEDEVCOComstockDiversified Away100%
0.1
  Correlation Coefficient

Average diversification

The 3 months correlation between PEDEVCO and Comstock is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding PEDEVCO Corp and Comstock Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Comstock Resources and PEDEVCO Corp 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 PEDEVCO Corp 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 PEDEVCO Corp i.e., PEDEVCO Corp and Comstock Resources go up and down completely randomly.

Pair Corralation between PEDEVCO Corp and Comstock Resources

Considering the 90-day investment horizon PEDEVCO Corp is expected to under-perform the Comstock Resources. In addition to that, PEDEVCO Corp is 1.02 times more volatile than Comstock Resources. It trades about 0.0 of its total potential returns per unit of risk. Comstock Resources is currently generating about 0.05 per unit of volatility. If you would invest  1,176  in Comstock Resources on November 26, 2024 and sell it today you would earn a total of  734.00  from holding Comstock Resources or generate 62.41% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

PEDEVCO Corp  vs.  Comstock Resources

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -200204060
JavaScript chart by amCharts 3.21.15PED CRK
       Timeline  
PEDEVCO Corp 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days PEDEVCO Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Stock's technical and fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb0.70.750.80.850.90.951
Comstock Resources 

Risk-Adjusted Performance

OK

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Comstock Resources are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite quite unsteady basic indicators, Comstock Resources disclosed solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb141516171819202122

PEDEVCO Corp and Comstock Resources Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-5.34-4.0-2.66-1.320.01.212.463.724.976.22 0.0260.0280.0300.0320.0340.0360.038
JavaScript chart by amCharts 3.21.15PED CRK
       Returns  

Pair Trading with PEDEVCO Corp and Comstock Resources

The main advantage of trading using opposite PEDEVCO Corp and Comstock Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PEDEVCO Corp 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.
The idea behind PEDEVCO Corp and Comstock Resources 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.
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.

Other Complementary Tools

Money Flow Index
Determine momentum by analyzing Money Flow Index and other technical indicators
Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities
CEOs Directory
Screen CEOs from public companies around the world
Companies Directory
Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals
Portfolio Dashboard
Portfolio dashboard that provides centralized access to all your investments