Correlation Between Lincoln Inflation and Comstock Capital
Can any of the company-specific risk be diversified away by investing in both Lincoln Inflation 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 Lincoln Inflation and Comstock Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lincoln Inflation Plus and Comstock Capital Value, you can compare the effects of market volatilities on Lincoln Inflation 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 Lincoln Inflation with a short position of Comstock Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lincoln Inflation and Comstock Capital.
Diversification Opportunities for Lincoln Inflation and Comstock Capital
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Lincoln and Comstock is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Lincoln Inflation Plus 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 Lincoln Inflation 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 Lincoln Inflation Plus 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 Lincoln Inflation i.e., Lincoln Inflation and Comstock Capital go up and down completely randomly.
Pair Corralation between Lincoln Inflation and Comstock Capital
Assuming the 90 days horizon Lincoln Inflation is expected to generate 3.32 times less return on investment than Comstock Capital. In addition to that, Lincoln Inflation is 1.56 times more volatile than Comstock Capital Value. It trades about 0.06 of its total potential returns per unit of risk. Comstock Capital Value is currently generating about 0.3 per unit of volatility. If you would invest 417.00 in Comstock Capital Value on May 1, 2025 and sell it today you would earn a total of 22.00 from holding Comstock Capital Value or generate 5.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lincoln Inflation Plus vs. Comstock Capital Value
Performance |
| Timeline |
| Lincoln Inflation Plus |
| Comstock Capital Value |
Lincoln Inflation and Comstock Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lincoln Inflation and Comstock Capital
The main advantage of trading using opposite Lincoln Inflation and Comstock Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lincoln Inflation 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.| Lincoln Inflation vs. Eagle Growth Income | Lincoln Inflation vs. Qs Growth Fund | Lincoln Inflation vs. Chase Growth Fund | Lincoln Inflation vs. Auer Growth Fund |
| Comstock Capital vs. Lord Abbett Convertible | Comstock Capital vs. Fidelity Sai Convertible | Comstock Capital vs. Columbia Convertible Securities | Comstock Capital vs. Calamos Dynamic Convertible |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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