Correlation Between Ford and COMCAST
Specify exactly 2 symbols:
By analyzing existing cross correlation between Ford Motor and COMCAST P NEW, you can compare the effects of market volatilities on Ford 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 Ford with a short position of COMCAST. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ford and COMCAST.
Diversification Opportunities for Ford and COMCAST
Very good diversification
The 3 months correlation between Ford and COMCAST is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Ford Motor 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 Ford 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 Ford Motor 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 Ford i.e., Ford and COMCAST go up and down completely randomly.
Pair Corralation between Ford and COMCAST
Taking into account the 90-day investment horizon Ford Motor is expected to generate 1.68 times more return on investment than COMCAST. However, Ford is 1.68 times more volatile than COMCAST P NEW. It trades about 0.01 of its potential returns per unit of risk. COMCAST P NEW is currently generating about 0.01 per unit of risk. If you would invest 1,122 in Ford Motor on August 27, 2024 and sell it today you would lose (4.00) from holding Ford Motor or give up 0.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 76.19% |
| Values | Daily Returns |
Ford Motor vs. COMCAST P NEW
Performance |
| Timeline |
| Ford Motor |
| COMCAST P NEW |
Ford and COMCAST Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ford and COMCAST
The main advantage of trading using opposite Ford and COMCAST positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ford 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.The idea behind Ford Motor and COMCAST P NEW pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| COMCAST vs. National Beverage Corp | COMCAST vs. ServiceNow | COMCAST vs. Westrock Coffee | COMCAST vs. Lipocine |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |