Correlation Between One Liberty and Comstock Holding

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

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

Diversification Opportunities for One Liberty and Comstock Holding

0.07

Correlation Coefficient

One Liberty  Comstock Holding

Significant diversification

The 3 months correlation between One and Comstock is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding One Liberty Properties 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 One Liberty 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 One Liberty Properties 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 One Liberty i.e., One Liberty and Comstock Holding go up and down completely randomly.

Pair Corralation between One Liberty and Comstock Holding

Considering the 90-day investment horizon One Liberty Properties is expected to generate 0.48 times more return on investment than Comstock Holding. However, One Liberty Properties is 2.09 times less risky than Comstock Holding. It trades about -0.02 of its potential returns per unit of risk. Comstock Holding Companies is currently generating about -0.1 per unit of risk. If you would invest  2,702  in One Liberty Properties on December 20, 2024 and sell it today you would lose (62.00) from holding One Liberty Properties or give up 2.29% of portfolio value over 90 days.

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

One Liberty Properties  vs.  Comstock Holding Companies

One Liberty Properties

Risk-Adjusted Performance

Very Weak

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

Comstock Holding Com

Risk-Adjusted Performance

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 April 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with One Liberty and Comstock Holding

The main advantage of trading using opposite One Liberty and Comstock Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if One Liberty 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.

The idea behind One Liberty Properties and Comstock Holding Companies 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.