Correlation Between Comcast Corp and XL Axiata
Can any of the company-specific risk be diversified away by investing in both Comcast Corp and XL Axiata 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 XL Axiata into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Comcast Corp and XL Axiata Tbk, you can compare the effects of market volatilities on Comcast Corp and XL Axiata 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 XL Axiata. Check out your portfolio center. Please also check ongoing floating volatility patterns of Comcast Corp and XL Axiata.
Diversification Opportunities for Comcast Corp and XL Axiata
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Comcast and PTXKY is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Comcast Corp and XL Axiata Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XL Axiata Tbk 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 XL Axiata. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XL Axiata Tbk has no effect on the direction of Comcast Corp i.e., Comcast Corp and XL Axiata go up and down completely randomly.
Pair Corralation between Comcast Corp and XL Axiata
Assuming the 90 days horizon Comcast Corp is expected to generate 1.86 times less return on investment than XL Axiata. But when comparing it to its historical volatility, Comcast Corp is 2.79 times less risky than XL Axiata. It trades about 0.12 of its potential returns per unit of risk. XL Axiata Tbk is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 266.00 in XL Axiata Tbk on August 24, 2024 and sell it today you would earn a total of 18.00 from holding XL Axiata Tbk or generate 6.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Comcast Corp vs. XL Axiata Tbk
Performance |
| Timeline |
| Comcast Corp |
| XL Axiata Tbk |
Comcast Corp and XL Axiata Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Comcast Corp and XL Axiata
The main advantage of trading using opposite Comcast Corp and XL Axiata positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Comcast Corp position performs unexpectedly, XL Axiata 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 XL Axiata will offset losses from the drop in XL Axiata's long position.| Comcast Corp vs. Small Cap Core | Comcast Corp vs. FitLife Brands, Common | Comcast Corp vs. Mutual Of America | Comcast Corp vs. Gfl Environmental Holdings |
| XL Axiata vs. Amrica Mvil, SAB | XL Axiata vs. Airtel Africa Plc | XL Axiata vs. ATT Inc | XL Axiata vs. FingerMotion |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |