Correlation Between Access Power and Comcast Corp
Can any of the company-specific risk be diversified away by investing in both Access Power and Comcast Corp 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 Access Power and Comcast Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Access Power Co and Comcast Corp, you can compare the effects of market volatilities on Access Power and Comcast Corp 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 Access Power with a short position of Comcast Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Access Power and Comcast Corp.
Diversification Opportunities for Access Power and Comcast Corp
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Access and Comcast is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Access Power Co and Comcast Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Comcast Corp and Access Power 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 Access Power Co are associated (or correlated) with Comcast Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Comcast Corp has no effect on the direction of Access Power i.e., Access Power and Comcast Corp go up and down completely randomly.
Pair Corralation between Access Power and Comcast Corp
Given the investment horizon of 90 days Access Power Co is expected to generate 11.37 times more return on investment than Comcast Corp. However, Access Power is 11.37 times more volatile than Comcast Corp. It trades about 0.27 of its potential returns per unit of risk. Comcast Corp is currently generating about -0.04 per unit of risk. If you would invest 0.10 in Access Power Co on November 18, 2024 and sell it today you would earn a total of 0.17 from holding Access Power Co or generate 170.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Access Power Co vs. Comcast Corp
Performance |
| Timeline |
| Access Power |
| Comcast Corp |
Access Power and Comcast Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Access Power and Comcast Corp
The main advantage of trading using opposite Access Power and Comcast Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Access Power position performs unexpectedly, Comcast Corp 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 Corp will offset losses from the drop in Comcast Corp's long position.| Access Power vs. BCE Inc | Access Power vs. Axiologix | Access Power vs. Advanced Info Service | Access Power vs. American Nortel Communications |
| Comcast Corp vs. Cable One | Comcast Corp vs. T Mobile | Comcast Corp vs. Altice USA | Comcast Corp vs. Verizon Communications |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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