Correlation Between Exchange Bankshares and Comstock Resources
Can any of the company-specific risk be diversified away by investing in both Exchange Bankshares and Comstock Resources 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 Exchange Bankshares and Comstock Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Exchange Bankshares and Comstock Resources, you can compare the effects of market volatilities on Exchange Bankshares and Comstock Resources 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 Exchange Bankshares with a short position of Comstock Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exchange Bankshares and Comstock Resources.
Diversification Opportunities for Exchange Bankshares and Comstock Resources
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Exchange and Comstock is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Exchange Bankshares and Comstock Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Comstock Resources and Exchange Bankshares 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 Exchange Bankshares are associated (or correlated) with Comstock Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Comstock Resources has no effect on the direction of Exchange Bankshares i.e., Exchange Bankshares and Comstock Resources go up and down completely randomly.
Pair Corralation between Exchange Bankshares and Comstock Resources
Given the investment horizon of 90 days Exchange Bankshares is expected to generate 4.12 times less return on investment than Comstock Resources. But when comparing it to its historical volatility, Exchange Bankshares is 2.55 times less risky than Comstock Resources. It trades about 0.15 of its potential returns per unit of risk. Comstock Resources is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 1,637 in Comstock Resources on September 1, 2025 and sell it today you would earn a total of 1,049 from holding Comstock Resources or generate 64.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Exchange Bankshares vs. Comstock Resources
Performance |
| Timeline |
| Exchange Bankshares |
| Comstock Resources |
Exchange Bankshares and Comstock Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Exchange Bankshares and Comstock Resources
The main advantage of trading using opposite Exchange Bankshares and Comstock Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exchange Bankshares position performs unexpectedly, Comstock Resources 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 Resources will offset losses from the drop in Comstock Resources' long position.| Exchange Bankshares vs. Arizona Metals Corp | Exchange Bankshares vs. E Home Household Service | Exchange Bankshares vs. Fortescue Metals Group | Exchange Bankshares vs. ABN AMRO Bank |
| Comstock Resources vs. Coffee Holding Co | Comstock Resources vs. Hunter Creek Mining | Comstock Resources vs. Paiute Oil Mining | Comstock Resources vs. GoldQuest Mining Corp |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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