Correlation Between Com Guard and Capitol Federal
Can any of the company-specific risk be diversified away by investing in both Com Guard and Capitol Federal 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 Com Guard and Capitol Federal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Com GuardCom and Capitol Federal Financial, you can compare the effects of market volatilities on Com Guard and Capitol Federal 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 Com Guard with a short position of Capitol Federal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Com Guard and Capitol Federal.
Diversification Opportunities for Com Guard and Capitol Federal
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Com and Capitol is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Com GuardCom and Capitol Federal Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Capitol Federal Financial and Com Guard 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 Com GuardCom are associated (or correlated) with Capitol Federal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Capitol Federal Financial has no effect on the direction of Com Guard i.e., Com Guard and Capitol Federal go up and down completely randomly.
Pair Corralation between Com Guard and Capitol Federal
Given the investment horizon of 90 days Com GuardCom is expected to generate 7.42 times more return on investment than Capitol Federal. However, Com Guard is 7.42 times more volatile than Capitol Federal Financial. It trades about 0.04 of its potential returns per unit of risk. Capitol Federal Financial is currently generating about 0.05 per unit of risk. If you would invest 0.11 in Com GuardCom on September 4, 2025 and sell it today you would lose (0.02) from holding Com GuardCom or give up 18.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Com GuardCom vs. Capitol Federal Financial
Performance |
| Timeline |
| Com GuardCom |
| Capitol Federal Financial |
Com Guard and Capitol Federal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Com Guard and Capitol Federal
The main advantage of trading using opposite Com Guard and Capitol Federal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Com Guard position performs unexpectedly, Capitol Federal 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 Capitol Federal will offset losses from the drop in Capitol Federal's long position.| Com Guard vs. Home Loan Financial | Com Guard vs. Liberty Broadband | Com Guard vs. American Transportation Holdings | Com Guard vs. Broadstone Net Lease |
| Capitol Federal vs. Solvay Bank Corp | Capitol Federal vs. ZhongAn Online P | Capitol Federal vs. National Bank of | Capitol Federal vs. Global E Online |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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