Correlation Between Dow Jones and COMCAST
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By analyzing existing cross correlation between Dow Jones Industrial and COMCAST P NEW, you can compare the effects of market volatilities on Dow Jones and COMCAST 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 Dow Jones with a short position of COMCAST. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and COMCAST.
Diversification Opportunities for Dow Jones and COMCAST
Excellent diversification
The 3 months correlation between Dow and COMCAST is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and COMCAST P NEW in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COMCAST P NEW and Dow Jones 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 Dow Jones Industrial are associated (or correlated) with COMCAST. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COMCAST P NEW has no effect on the direction of Dow Jones i.e., Dow Jones and COMCAST go up and down completely randomly.
Pair Corralation between Dow Jones and COMCAST
Assuming the 90 days trading horizon Dow Jones Industrial is expected to generate 0.78 times more return on investment than COMCAST. However, Dow Jones Industrial is 1.28 times less risky than COMCAST. It trades about 0.16 of its potential returns per unit of risk. COMCAST P NEW is currently generating about -0.02 per unit of risk. If you would invest 3,857,103 in Dow Jones Industrial on August 30, 2024 and sell it today you would earn a total of 615,103 from holding Dow Jones Industrial or generate 15.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 85.71% |
| Values | Daily Returns |
Dow Jones Industrial vs. COMCAST P NEW
Performance |
| Timeline |
Dow Jones and COMCAST Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
COMCAST P NEW
Pair trading matchups for COMCAST
Pair Trading with Dow Jones and COMCAST
The main advantage of trading using opposite Dow Jones and COMCAST positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, COMCAST 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 will offset losses from the drop in COMCAST's long position.| Dow Jones vs. Skillful Craftsman Education | Dow Jones vs. Acco Brands | Dow Jones vs. Cracker Barrel Old | Dow Jones vs. Coursera |
| COMCAST vs. Harmony Gold Mining | COMCAST vs. Exchange Bankshares | COMCAST vs. Juniata Valley Financial | COMCAST vs. Avient Corp |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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