Correlation Between Comstock Mining and Expand Energy

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

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

Diversification Opportunities for Comstock Mining and Expand Energy

0.7

Correlation Coefficient

Comstock Mining  Expand Energy

Poor diversification

The 3 months correlation between Comstock and Expand is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Comstock Mining and Expand Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Expand Energy 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 Expand Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Expand Energy has no effect on the direction of Comstock Mining i.e., Comstock Mining and Expand Energy go up and down completely randomly.

Pair Corralation between Comstock Mining and Expand Energy

Given the investment horizon of 90 days Comstock Mining is expected to generate 2.79 times more return on investment than Expand Energy. However, Comstock Mining is 2.79 times more volatile than Expand Energy. It trades about 0.01 of its potential returns per unit of risk. Expand Energy is currently generating about -0.04 per unit of risk. If you would invest  363.00  in Comstock Mining on July 13, 2025 and sell it today you would lose (22.00) from holding Comstock Mining or give up 6.06% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Comstock Mining  vs.  Expand Energy

Comstock Mining

Risk-Adjusted Performance

Weakest

Over the last 90 days Comstock Mining has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental indicators, Comstock Mining is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Expand Energy

Risk-Adjusted Performance

Weakest

Over the last 90 days Expand Energy has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Expand Energy is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Comstock Mining and Expand Energy

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

The idea behind Comstock Mining and Expand Energy 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.