Correlation Between Comstock Holding and MoneyHero Limited

Can any of the company-specific risk be diversified away by investing in both Comstock Holding and MoneyHero Limited 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 Comstock Holding and MoneyHero Limited into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Comstock Holding Companies and MoneyHero Limited Class, you can compare the effects of market volatilities on Comstock Holding and MoneyHero Limited 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 Comstock Holding with a short position of MoneyHero Limited. Check out your portfolio center. Please also check ongoing floating volatility patterns of Comstock Holding and MoneyHero Limited.

Diversification Opportunities for Comstock Holding and MoneyHero Limited

-0.1

Correlation Coefficient

Comstock Holding  MoneyHero Limited

Good diversification

The 3 months correlation between Comstock and MoneyHero is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Comstock Holding Companies and MoneyHero Limited Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MoneyHero Limited Class and Comstock Holding 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 Comstock Holding Companies are associated (or correlated) with MoneyHero Limited. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MoneyHero Limited Class has no effect on the direction of Comstock Holding i.e., Comstock Holding and MoneyHero Limited go up and down completely randomly.

Pair Corralation between Comstock Holding and MoneyHero Limited

Given the investment horizon of 90 days Comstock Holding Companies is expected to generate 0.45 times more return on investment than MoneyHero Limited. However, Comstock Holding Companies is 2.22 times less risky than MoneyHero Limited. It trades about 0.06 of its potential returns per unit of risk. MoneyHero Limited Class is currently generating about -0.01 per unit of risk. If you would invest  408.00  in Comstock Holding Companies on October 7, 2024 and sell it today you would earn a total of  427.00  from holding Comstock Holding Companies or generate 104.66% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Comstock Holding Companies  vs.  MoneyHero Limited Class

Comstock Holding Com

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Comstock Holding Companies has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's fundamental indicators remain fairly strong which may send shares a bit higher in February 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

MoneyHero Limited Class

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in MoneyHero Limited Class are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, MoneyHero Limited may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Comstock Holding and MoneyHero Limited

The main advantage of trading using opposite Comstock Holding and MoneyHero Limited positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Comstock Holding position performs unexpectedly, MoneyHero Limited 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 MoneyHero Limited will offset losses from the drop in MoneyHero Limited's long position.

The idea behind Comstock Holding Companies and MoneyHero Limited Class 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.

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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.