Correlation Between Comcast Corp and KORE Group
Can any of the company-specific risk be diversified away by investing in both Comcast Corp and KORE Group 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 Corp and KORE Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Comcast Corp and KORE Group Holdings, you can compare the effects of market volatilities on Comcast Corp and KORE Group 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 Corp with a short position of KORE Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Comcast Corp and KORE Group.
Diversification Opportunities for Comcast Corp and KORE Group
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Comcast and KORE is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Comcast Corp and KORE Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KORE Group Holdings and Comcast Corp 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 Corp are associated (or correlated) with KORE Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KORE Group Holdings has no effect on the direction of Comcast Corp i.e., Comcast Corp and KORE Group go up and down completely randomly.
Pair Corralation between Comcast Corp and KORE Group
Assuming the 90 days horizon Comcast Corp is expected to under-perform the KORE Group. But the stock apears to be less risky and, when comparing its historical volatility, Comcast Corp is 2.03 times less risky than KORE Group. The stock trades about -0.1 of its potential returns per unit of risk. The KORE Group Holdings is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 228.00 in KORE Group Holdings on November 28, 2024 and sell it today you would earn a total of 3.00 from holding KORE Group Holdings or generate 1.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Comcast Corp vs. KORE Group Holdings
Performance |
| Timeline |
| Comcast Corp |
| KORE Group Holdings |
Comcast Corp and KORE Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Comcast Corp and KORE Group
The main advantage of trading using opposite Comcast Corp and KORE Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Comcast Corp position performs unexpectedly, KORE Group 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 KORE Group will offset losses from the drop in KORE Group's long position.| Comcast Corp vs. Cable One | Comcast Corp vs. T Mobile | Comcast Corp vs. Altice USA | Comcast Corp vs. Verizon Communications |
| KORE Group vs. Liberty Broadband Srs | KORE Group vs. Cable One | KORE Group vs. Liberty Broadband Corp | KORE Group vs. Telkom Indonesia Tbk |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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