Correlation Between DXC Technology and Comcast
Can any of the company-specific risk be diversified away by investing in both DXC Technology and Comcast 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 DXC Technology and Comcast into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DXC Technology and Comcast, you can compare the effects of market volatilities on DXC Technology 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 DXC Technology with a short position of Comcast. Check out your portfolio center. Please also check ongoing floating volatility patterns of DXC Technology and Comcast.
Diversification Opportunities for DXC Technology and Comcast
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between DXC and Comcast is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding DXC Technology and Comcast in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Comcast and DXC Technology 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 DXC Technology 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 has no effect on the direction of DXC Technology i.e., DXC Technology and Comcast go up and down completely randomly.
Pair Corralation between DXC Technology and Comcast
Assuming the 90 days trading horizon DXC Technology is expected to under-perform the Comcast. But the stock apears to be less risky and, when comparing its historical volatility, DXC Technology is 2.43 times less risky than Comcast. The stock trades about -0.07 of its potential returns per unit of risk. The Comcast is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 74,098 in Comcast on September 3, 2024 and sell it today you would earn a total of 14,502 from holding Comcast or generate 19.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 39.92% |
| Values | Daily Returns |
DXC Technology vs. Comcast
Performance |
| Timeline |
| DXC Technology |
| Comcast |
DXC Technology and Comcast Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DXC Technology and Comcast
The main advantage of trading using opposite DXC Technology and Comcast positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DXC Technology 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.| DXC Technology vs. Cognizant Technology Solutions | DXC Technology vs. The Select Sector | DXC Technology vs. Promotora y Operadora | DXC Technology vs. SPDR Series Trust |
| Comcast vs. DXC Technology | Comcast vs. FIBRA Storage | Comcast vs. Verizon Communications | Comcast vs. United States Steel |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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