Correlation Between Comstock Holding and NH Foods
Can any of the company-specific risk be diversified away by investing in both Comstock Holding and NH Foods 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 NH Foods 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 NH Foods Ltd, you can compare the effects of market volatilities on Comstock Holding and NH Foods 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 NH Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Comstock Holding and NH Foods.
Diversification Opportunities for Comstock Holding and NH Foods
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Comstock and NIPMY is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Comstock Holding Companies and NH Foods Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NH Foods 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 NH Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NH Foods has no effect on the direction of Comstock Holding i.e., Comstock Holding and NH Foods go up and down completely randomly.
Pair Corralation between Comstock Holding and NH Foods
If you would invest 795.00 in Comstock Holding Companies on September 9, 2024 and sell it today you would earn a total of 75.00 from holding Comstock Holding Companies or generate 9.43% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Comstock Holding Companies vs. NH Foods Ltd
Performance |
Timeline |
Comstock Holding Com |
NH Foods |
Comstock Holding and NH Foods Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Comstock Holding and NH Foods
The main advantage of trading using opposite Comstock Holding and NH Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Comstock Holding position performs unexpectedly, NH Foods 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 NH Foods will offset losses from the drop in NH Foods' long position.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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
FinTech Suite Use AI to screen and filter profitable investment opportunities | |
Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |