Correlation Between NESNVX and Comstock Holding

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

By analyzing existing cross correlation between NESNVX 3625 24 SEP 28 and Comstock Holding Companies, you can compare the effects of market volatilities on NESNVX 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 NESNVX with a short position of Comstock Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of NESNVX and Comstock Holding.

Diversification Opportunities for NESNVX and Comstock Holding

0.72

Correlation Coefficient

NESNVX  Comstock Holding

Poor diversification

The 3 months correlation between NESNVX and Comstock is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding NESNVX 3625 24 SEP 28 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 NESNVX 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 NESNVX 3625 24 SEP 28 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 NESNVX i.e., NESNVX and Comstock Holding go up and down completely randomly.

Pair Corralation between NESNVX and Comstock Holding

Assuming the 90 days trading horizon NESNVX is expected to generate 19.16 times less return on investment than Comstock Holding. But when comparing it to its historical volatility, NESNVX 3625 24 SEP 28 is 7.88 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 0.05 of returns per unit of risk over similar time horizon. If you would invest  482.00  in Comstock Holding Companies on October 6, 2024 and sell it today you would earn a total of  353.00  from holding Comstock Holding Companies or generate 73.24% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	49.47%
Values	Daily Returns

NESNVX 3625 24 SEP 28  vs.  Comstock Holding Companies

NESNVX 3625 24

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in NESNVX 3625 24 SEP 28 are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, NESNVX 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

0 of 100

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 unfluctuating performance in the last few months, the Stock's fundamental indicators remain fairly strong which may send shares a bit higher in February 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with NESNVX and Comstock Holding

The main advantage of trading using opposite NESNVX and Comstock Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NESNVX 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 NESNVX 3625 24 SEP 28 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.

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 Transaction History module to view history of all your transactions and understand their impact on performance.