Correlation Between PHX Minerals and Comstock Resources
Can any of the company-specific risk be diversified away by investing in both PHX Minerals 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 PHX Minerals and Comstock Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PHX Minerals and Comstock Resources, you can compare the effects of market volatilities on PHX Minerals 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 PHX Minerals with a short position of Comstock Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of PHX Minerals and Comstock Resources.
Diversification Opportunities for PHX Minerals and Comstock Resources
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between PHX and Comstock is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding PHX Minerals and Comstock Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Comstock Resources and PHX Minerals 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 PHX Minerals 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 PHX Minerals i.e., PHX Minerals and Comstock Resources go up and down completely randomly.
Pair Corralation between PHX Minerals and Comstock Resources
Considering the 90-day investment horizon PHX Minerals is expected to generate 0.59 times more return on investment than Comstock Resources. However, PHX Minerals is 1.69 times less risky than Comstock Resources. It trades about 0.03 of its potential returns per unit of risk. Comstock Resources is currently generating about -0.17 per unit of risk. If you would invest 391.00 in PHX Minerals on November 9, 2024 and sell it today you would earn a total of 3.00 from holding PHX Minerals or generate 0.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
PHX Minerals vs. Comstock Resources
Performance |
| Timeline |
| PHX Minerals |
| Comstock Resources |
PHX Minerals and Comstock Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PHX Minerals and Comstock Resources
The main advantage of trading using opposite PHX Minerals and Comstock Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PHX Minerals 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.| PHX Minerals vs. Gran Tierra Energy | PHX Minerals vs. Permian Resources | PHX Minerals vs. PermRock Royalty Trust | PHX Minerals vs. MV Oil Trust |
| Comstock Resources vs. Range Resources Corp | Comstock Resources vs. Permian Resources | Comstock Resources vs. EQT Corporation | Comstock Resources vs. Vital Energy |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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