Correlation Between Franchise and Comstock Holding
Can any of the company-specific risk be diversified away by investing in both Franchise 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 Franchise and Comstock Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franchise Group and Comstock Holding Companies, you can compare the effects of market volatilities on Franchise 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 Franchise with a short position of Comstock Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franchise and Comstock Holding.
Diversification Opportunities for Franchise and Comstock Holding
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Franchise and Comstock is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Franchise Group 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 Franchise 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 Franchise Group 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 Franchise i.e., Franchise and Comstock Holding go up and down completely randomly.
Pair Corralation between Franchise and Comstock Holding
If you would invest 860.00 in Comstock Holding Companies on September 15, 2024 and sell it today you would lose (20.00) from holding Comstock Holding Companies or give up 2.33% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 1.56% |
Values | Daily Returns |
Franchise Group vs. Comstock Holding Companies
Performance |
Timeline |
Franchise Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Comstock Holding Com |
Franchise and Comstock Holding Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Franchise and Comstock Holding
The main advantage of trading using opposite Franchise and Comstock Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franchise 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.Franchise vs. Comstock Holding Companies | Franchise vs. HNI Corp | Franchise vs. WiMi Hologram Cloud | Franchise vs. SEI Investments |
Comstock Holding vs. Arhaus Inc | Comstock Holding vs. Floor Decor Holdings | Comstock Holding vs. Kingfisher plc | Comstock Holding vs. Haverty Furniture Companies |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |