Correlation Between Comcast Corp and Lumen Technologies
Can any of the company-specific risk be diversified away by investing in both Comcast Corp and Lumen Technologies 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 Lumen Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Comcast Corp and Lumen Technologies, you can compare the effects of market volatilities on Comcast Corp and Lumen Technologies 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 Lumen Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Comcast Corp and Lumen Technologies.
Diversification Opportunities for Comcast Corp and Lumen Technologies
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Comcast and Lumen is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Comcast Corp and Lumen Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lumen Technologies 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 Lumen Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lumen Technologies has no effect on the direction of Comcast Corp i.e., Comcast Corp and Lumen Technologies go up and down completely randomly.
Pair Corralation between Comcast Corp and Lumen Technologies
Assuming the 90 days horizon Comcast Corp is expected to generate 25.93 times less return on investment than Lumen Technologies. But when comparing it to its historical volatility, Comcast Corp is 4.72 times less risky than Lumen Technologies. It trades about 0.01 of its potential returns per unit of risk. Lumen Technologies is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 514.00 in Lumen Technologies on October 20, 2024 and sell it today you would earn a total of 52.00 from holding Lumen Technologies or generate 10.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Comcast Corp vs. Lumen Technologies
Performance |
| Timeline |
| Comcast Corp |
| Lumen Technologies |
Comcast Corp and Lumen Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Comcast Corp and Lumen Technologies
The main advantage of trading using opposite Comcast Corp and Lumen Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Comcast Corp position performs unexpectedly, Lumen Technologies 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 Lumen Technologies will offset losses from the drop in Lumen Technologies' long position.| Comcast Corp vs. Cable One | Comcast Corp vs. T Mobile | Comcast Corp vs. Altice USA | Comcast Corp vs. Verizon Communications |
| Lumen Technologies vs. Verizon Communications | Lumen Technologies vs. T Mobile | Lumen Technologies vs. Comcast Corp | Lumen Technologies vs. ATT Inc |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |