Correlation Between Pinterest and Comstock Holding
Can any of the company-specific risk be diversified away by investing in both Pinterest 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 Pinterest and Comstock Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pinterest and Comstock Holding Companies, you can compare the effects of market volatilities on Pinterest 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 Pinterest with a short position of Comstock Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pinterest and Comstock Holding.
Diversification Opportunities for Pinterest and Comstock Holding
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Pinterest and Comstock is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Pinterest 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 Pinterest 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 Pinterest 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 Pinterest i.e., Pinterest and Comstock Holding go up and down completely randomly.
Pair Corralation between Pinterest and Comstock Holding
Given the investment horizon of 90 days Pinterest is expected to generate 0.88 times more return on investment than Comstock Holding. However, Pinterest is 1.14 times less risky than Comstock Holding. It trades about -0.07 of its potential returns per unit of risk. Comstock Holding Companies is currently generating about -0.35 per unit of risk. If you would invest 3,259 in Pinterest on August 31, 2024 and sell it today you would lose (227.00) from holding Pinterest or give up 6.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pinterest vs. Comstock Holding Companies
Performance |
| Timeline |
| Comstock Holding Com |
Pinterest and Comstock Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pinterest and Comstock Holding
The main advantage of trading using opposite Pinterest and Comstock Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pinterest 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.| Pinterest vs. Twilio Inc | Pinterest vs. Meta Platforms | Pinterest vs. Alphabet Inc Class C | Pinterest vs. Alphabet Inc Class A |
| Comstock Holding vs. St Joe Company | Comstock Holding vs. Stratus Properties | Comstock Holding vs. Mitsui Fudosan Co | Comstock Holding vs. New World Development |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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