Correlation Between Superior Plus and Comcast
Can any of the company-specific risk be diversified away by investing in both Superior Plus and Comcast 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 Superior Plus and Comcast into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Superior Plus Corp and Comcast, you can compare the effects of market volatilities on Superior Plus and Comcast 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 Superior Plus with a short position of Comcast. Check out your portfolio center. Please also check ongoing floating volatility patterns of Superior Plus and Comcast.
Diversification Opportunities for Superior Plus and Comcast
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Superior and Comcast is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Superior Plus Corp and Comcast in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Comcast and Superior Plus 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 Superior Plus Corp are associated (or correlated) with Comcast. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Comcast has no effect on the direction of Superior Plus i.e., Superior Plus and Comcast go up and down completely randomly.
Pair Corralation between Superior Plus and Comcast
Assuming the 90 days horizon Superior Plus Corp is expected to under-perform the Comcast. In addition to that, Superior Plus is 1.31 times more volatile than Comcast. It trades about -0.02 of its total potential returns per unit of risk. Comcast is currently generating about 0.04 per unit of volatility. If you would invest 3,066 in Comcast on August 29, 2024 and sell it today you would earn a total of 1,049 from holding Comcast or generate 34.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Superior Plus Corp vs. Comcast
Performance |
| Timeline |
| Superior Plus Corp |
| Comcast |
Superior Plus and Comcast Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Superior Plus and Comcast
The main advantage of trading using opposite Superior Plus and Comcast positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Superior Plus position performs unexpectedly, Comcast 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 Comcast will offset losses from the drop in Comcast's long position.| Superior Plus vs. Meli Hotels International | Superior Plus vs. InterContinental Hotels Group | Superior Plus vs. PT Bank Maybank | Superior Plus vs. Pebblebrook Hotel Trust |
| Comcast vs. Liberty Broadband | Comcast vs. Superior Plus Corp | Comcast vs. NMI Holdings | Comcast vs. SIVERS SEMICONDUCTORS AB |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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