Correlation Between ENTERGY and Comstock Holding

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

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

Diversification Opportunities for ENTERGY and Comstock Holding

0.0

Correlation Coefficient

ENTERGY  Comstock Holding

Pay attention - limited upside

The 3 months correlation between ENTERGY and Comstock is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ENTERGY TEX INC 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 ENTERGY 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 ENTERGY TEX INC 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 ENTERGY i.e., ENTERGY and Comstock Holding go up and down completely randomly.

Pair Corralation between ENTERGY and Comstock Holding

If you would invest  0.00  in ENTERGY TEX INC on December 4, 2024 and sell it today you would earn a total of  0.00  from holding ENTERGY TEX INC or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	5.0%
Values	Daily Returns

ENTERGY TEX INC  vs.  Comstock Holding Companies

ENTERGY TEX INC

Risk-Adjusted Performance

Very Weak

Over the last 90 days ENTERGY TEX INC has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, ENTERGY is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the 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 ENTERGY and Comstock Holding

The main advantage of trading using opposite ENTERGY and Comstock Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ENTERGY 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 ENTERGY TEX INC 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.