Correlation Between Estee Lauder and COMCAST
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By analyzing existing cross correlation between Estee Lauder Companies and COMCAST P NEW, you can compare the effects of market volatilities on Estee Lauder 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 Estee Lauder with a short position of COMCAST. Check out your portfolio center. Please also check ongoing floating volatility patterns of Estee Lauder and COMCAST.
Diversification Opportunities for Estee Lauder and COMCAST
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Estee and COMCAST is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Estee Lauder Companies 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 Estee Lauder 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 Estee Lauder Companies 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 Estee Lauder i.e., Estee Lauder and COMCAST go up and down completely randomly.
Pair Corralation between Estee Lauder and COMCAST
Allowing for the 90-day total investment horizon Estee Lauder Companies is expected to generate 0.6 times more return on investment than COMCAST. However, Estee Lauder Companies is 1.67 times less risky than COMCAST. It trades about 0.61 of its potential returns per unit of risk. COMCAST P NEW is currently generating about 0.11 per unit of risk. If you would invest 6,256 in Estee Lauder Companies on September 14, 2024 and sell it today you would earn a total of 1,866 from holding Estee Lauder Companies or generate 29.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 76.19% |
| Values | Daily Returns |
Estee Lauder Companies vs. COMCAST P NEW
Performance |
| Timeline |
| Estee Lauder Companies |
| COMCAST P NEW |
Estee Lauder and COMCAST Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Estee Lauder and COMCAST
The main advantage of trading using opposite Estee Lauder and COMCAST positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Estee Lauder 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.| Estee Lauder vs. Edgewell Personal Care | Estee Lauder vs. Nu Skin Enterprises | Estee Lauder vs. Helen of Troy | Estee Lauder vs. European Wax Center |
| COMCAST vs. RBC Bearings Incorporated | COMCAST vs. Raytech Holding Limited | COMCAST vs. Lincoln Electric Holdings | COMCAST vs. Estee Lauder Companies |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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