Correlation Between Comstock Mining and RedFlow

Can any of the company-specific risk be diversified away by investing in both Comstock Mining and RedFlow 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 Comstock Mining and RedFlow into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Comstock Mining and RedFlow Limited, you can compare the effects of market volatilities on Comstock Mining and RedFlow 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 Comstock Mining with a short position of RedFlow. Check out your portfolio center. Please also check ongoing floating volatility patterns of Comstock Mining and RedFlow.

Diversification Opportunities for Comstock Mining and RedFlow

-0.62

Correlation Coefficient

Comstock Mining  RedFlow

Excellent diversification

The 3 months correlation between Comstock and RedFlow is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Comstock Mining and RedFlow Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RedFlow Limited and Comstock Mining 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 Comstock Mining are associated (or correlated) with RedFlow. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RedFlow Limited has no effect on the direction of Comstock Mining i.e., Comstock Mining and RedFlow go up and down completely randomly.

Pair Corralation between Comstock Mining and RedFlow

If you would invest  250.00  in Comstock Mining on March 10, 2025 and sell it today you would earn a total of  102.00  from holding Comstock Mining or generate 40.8% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	95.45%
Values	Daily Returns

Comstock Mining  vs.  RedFlow Limited

Comstock Mining

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Comstock Mining are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating fundamental indicators, Comstock Mining exhibited solid returns over the last few months and may actually be approaching a breakup point.

RedFlow Limited

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in RedFlow Limited are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, RedFlow reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Comstock Mining and RedFlow

The main advantage of trading using opposite Comstock Mining and RedFlow positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Comstock Mining position performs unexpectedly, RedFlow 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 RedFlow will offset losses from the drop in RedFlow's long position.

The idea behind Comstock Mining and RedFlow Limited 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.

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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.