Correlation Between Comcast Holdings and Rogers Communications
Can any of the company-specific risk be diversified away by investing in both Comcast Holdings and Rogers Communications 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 Comcast Holdings and Rogers Communications into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Comcast Holdings Corp and Rogers Communications, you can compare the effects of market volatilities on Comcast Holdings and Rogers Communications 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 Comcast Holdings with a short position of Rogers Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Comcast Holdings and Rogers Communications.
Diversification Opportunities for Comcast Holdings and Rogers Communications
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Comcast and Rogers is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Comcast Holdings Corp and Rogers Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rogers Communications and Comcast Holdings 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 Comcast Holdings Corp are associated (or correlated) with Rogers Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rogers Communications has no effect on the direction of Comcast Holdings i.e., Comcast Holdings and Rogers Communications go up and down completely randomly.
Pair Corralation between Comcast Holdings and Rogers Communications
Considering the 90-day investment horizon Comcast Holdings Corp is expected to generate 85.4 times more return on investment than Rogers Communications. However, Comcast Holdings is 85.4 times more volatile than Rogers Communications. It trades about 0.1 of its potential returns per unit of risk. Rogers Communications is currently generating about -0.07 per unit of risk. If you would invest 5,240 in Comcast Holdings Corp on November 1, 2024 and sell it today you would earn a total of 1,057 from holding Comcast Holdings Corp or generate 20.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 51.93% |
| Values | Daily Returns |
Comcast Holdings Corp vs. Rogers Communications
Performance |
| Timeline |
| Comcast Holdings Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
| Rogers Communications |
Comcast Holdings and Rogers Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Comcast Holdings and Rogers Communications
The main advantage of trading using opposite Comcast Holdings and Rogers Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Comcast Holdings position performs unexpectedly, Rogers Communications 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 Rogers Communications will offset losses from the drop in Rogers Communications' long position.| Comcast Holdings vs. Citizens | Comcast Holdings vs. STRATSSM Certificates series | Comcast Holdings vs. BlackRock Long Term Municipal | Comcast Holdings vs. Dillards Capital Trust |
| Rogers Communications vs. BCE Inc | Rogers Communications vs. America Movil SAB | Rogers Communications vs. Telus Corp | Rogers Communications vs. Vodafone Group PLC |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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