Correlation Between Grizzly Short and Comstock Capital

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

By analyzing existing cross correlation between Grizzly Short Fund and Comstock Capital Value, you can compare the effects of market volatilities on Grizzly Short and Comstock Capital 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 Grizzly Short with a short position of Comstock Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grizzly Short and Comstock Capital.

Diversification Opportunities for Grizzly Short and Comstock Capital

0.0

Correlation Coefficient

Grizzly Short  Comstock Capital

Pay attention - limited upside

The 3 months correlation between Grizzly and Comstock is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Grizzly Short Fund and Comstock Capital Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Comstock Capital Value and Grizzly Short 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 Grizzly Short Fund are associated (or correlated) with Comstock Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Comstock Capital Value has no effect on the direction of Grizzly Short i.e., Grizzly Short and Comstock Capital go up and down completely randomly.

Pair Corralation between Grizzly Short and Comstock Capital

Assuming the 90 days horizon Grizzly Short is expected to generate 1.36 times less return on investment than Comstock Capital. In addition to that, Grizzly Short is 3.4 times more volatile than Comstock Capital Value. It trades about 0.05 of its total potential returns per unit of risk. Comstock Capital Value is currently generating about 0.22 per unit of volatility. If you would invest  338.00  in Comstock Capital Value on December 22, 2024 and sell it today you would earn a total of  13.00  from holding Comstock Capital Value or generate 3.85% return on investment over 90 days.

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

Grizzly Short Fund  vs.  Comstock Capital Value

Grizzly Short

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Grizzly Short Fund are ranked lower than 3 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Grizzly Short is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Comstock Capital Value

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Comstock Capital Value are ranked lower than 17 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong fundamental indicators, Comstock Capital is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Grizzly Short and Comstock Capital

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

The idea behind Grizzly Short Fund and Comstock Capital Value 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..