Correlation Between Federated Global and Comstock Capital

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Can any of the company-specific risk be diversified away by investing in both Federated Global 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 Federated Global and Comstock Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Federated Global Allocation and Comstock Capital Value, you can compare the effects of market volatilities on Federated Global 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 Federated Global with a short position of Comstock Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated Global and Comstock Capital.

Diversification Opportunities for Federated Global and Comstock Capital

0.97
  Correlation Coefficient

Almost no diversification

The 3 months correlation between Federated and Comstock is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Federated Global Allocation 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 Federated Global 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 Federated Global Allocation 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 Federated Global i.e., Federated Global and Comstock Capital go up and down completely randomly.

Pair Corralation between Federated Global and Comstock Capital

Assuming the 90 days horizon Federated Global Allocation is expected to generate 1.31 times more return on investment than Comstock Capital. However, Federated Global is 1.31 times more volatile than Comstock Capital Value. It trades about 0.37 of its potential returns per unit of risk. Comstock Capital Value is currently generating about 0.32 per unit of risk. If you would invest  2,068  in Federated Global Allocation on April 2, 2025 and sell it today you would earn a total of  66.00  from holding Federated Global Allocation or generate 3.19% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Strong
Accuracy100.0%
ValuesDaily Returns

Federated Global Allocation  vs.  Comstock Capital Value

 Performance 
       Timeline  
Federated Global All 

Risk-Adjusted Performance

OK

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Federated Global Allocation are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward-looking signals, Federated Global may actually be approaching a critical reversion point that can send shares even higher in August 2025.
Comstock Capital Value 

Risk-Adjusted Performance

OK

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Comstock Capital Value are ranked lower than 8 (%) 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.

Federated Global and Comstock Capital Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Federated Global and Comstock Capital

The main advantage of trading using opposite Federated Global and Comstock Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated Global 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 Federated Global Allocation 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.

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