Correlation Between Maui Land and Comstock Mining

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

By analyzing existing cross correlation between Maui Land Pineapple and Comstock Mining, you can compare the effects of market volatilities on Maui Land and Comstock Mining 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 Maui Land with a short position of Comstock Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maui Land and Comstock Mining.

Diversification Opportunities for Maui Land and Comstock Mining

-0.62

Correlation Coefficient

Maui Land  Comstock Mining

Excellent diversification

The 3 months correlation between Maui and Comstock is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Maui Land Pineapple and Comstock Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Comstock Mining and Maui Land 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 Maui Land Pineapple are associated (or correlated) with Comstock Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Comstock Mining has no effect on the direction of Maui Land i.e., Maui Land and Comstock Mining go up and down completely randomly.

Pair Corralation between Maui Land and Comstock Mining

Considering the 90-day investment horizon Maui Land is expected to generate 44.54 times less return on investment than Comstock Mining. But when comparing it to its historical volatility, Maui Land Pineapple is 2.8 times less risky than Comstock Mining. It trades about 0.01 of its potential returns per unit of risk. Comstock Mining is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  28.00  in Comstock Mining on September 3, 2024 and sell it today you would earn a total of  9.00  from holding Comstock Mining or generate 32.14% return on investment over 90 days.

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

Maui Land Pineapple  vs.  Comstock Mining

Maui Land Pineapple

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Maui Land Pineapple has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable essential indicators, Maui Land is not utilizing all of its potentials. The recent stock price agitation, may contribute to short-term losses for the retail investors.

Comstock Mining

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Comstock Mining are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating fundamental indicators, Comstock Mining exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Maui Land and Comstock Mining

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

The idea behind Maui Land Pineapple and Comstock Mining 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.

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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.