Correlation Between Expand Energy and Comstock Resources
Can any of the company-specific risk be diversified away by investing in both Expand Energy 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 Expand Energy and Comstock Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Expand Energy and Comstock Resources, you can compare the effects of market volatilities on Expand Energy 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 Expand Energy with a short position of Comstock Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Expand Energy and Comstock Resources.
Diversification Opportunities for Expand Energy and Comstock Resources
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Expand and Comstock is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Expand Energy and Comstock Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Comstock Resources and Expand Energy 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 Expand Energy 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 Expand Energy i.e., Expand Energy and Comstock Resources go up and down completely randomly.
Pair Corralation between Expand Energy and Comstock Resources
Considering the 90-day investment horizon Expand Energy is expected to generate 0.53 times more return on investment than Comstock Resources. However, Expand Energy is 1.9 times less risky than Comstock Resources. It trades about -0.13 of its potential returns per unit of risk. Comstock Resources is currently generating about -0.17 per unit of risk. If you would invest 11,363 in Expand Energy on May 28, 2025 and sell it today you would lose (1,735) from holding Expand Energy or give up 15.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Expand Energy vs. Comstock Resources
Performance |
| Timeline |
| Expand Energy |
| Comstock Resources |
Expand Energy and Comstock Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Expand Energy and Comstock Resources
The main advantage of trading using opposite Expand Energy and Comstock Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Expand Energy 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.| Expand Energy vs. Life Insurance | Expand Energy vs. Prudential Financial 4125 | Expand Energy vs. Barrick Mining | Expand Energy vs. Mako Mining Corp |
| Comstock Resources vs. Antero Resources Corp | Comstock Resources vs. Range Resources Corp | Comstock Resources vs. SM Energy Co | Comstock Resources vs. Expand Energy |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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