Correlation Between Gabelli Media and Comstock Capital

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

By analyzing existing cross correlation between Gabelli Media Mogul and Comstock Capital Value, you can compare the effects of market volatilities on Gabelli Media and Comstock Capital 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 Gabelli Media with a short position of Comstock Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gabelli Media and Comstock Capital.

Diversification Opportunities for Gabelli Media and Comstock Capital

0.88

Correlation Coefficient

Gabelli Media  Comstock Capital

Very poor diversification

The 3 months correlation between Gabelli and Comstock is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Gabelli Media Mogul and Comstock Capital Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Comstock Capital Value and Gabelli Media 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 Gabelli Media Mogul are associated (or correlated) with Comstock Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Comstock Capital Value has no effect on the direction of Gabelli Media i.e., Gabelli Media and Comstock Capital go up and down completely randomly.

Pair Corralation between Gabelli Media and Comstock Capital

Assuming the 90 days horizon Gabelli Media Mogul is expected to generate 2.85 times more return on investment than Comstock Capital. However, Gabelli Media is 2.85 times more volatile than Comstock Capital Value. It trades about 0.19 of its potential returns per unit of risk. Comstock Capital Value is currently generating about 0.13 per unit of risk. If you would invest  874.00  in Gabelli Media Mogul on September 3, 2024 and sell it today you would earn a total of  100.00  from holding Gabelli Media Mogul or generate 11.44% return on investment over 90 days.

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

Gabelli Media Mogul  vs.  Comstock Capital Value

Gabelli Media Mogul

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Gabelli Media Mogul are ranked lower than 14 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak essential indicators, Gabelli Media may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Comstock Capital Value

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Comstock Capital Value are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Comstock Capital is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Gabelli Media and Comstock Capital

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

The idea behind Gabelli Media Mogul and Comstock Capital Value 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.