Correlation Between FARO Technologies and COMCAST
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By analyzing existing cross correlation between FARO Technologies and COMCAST P NEW, you can compare the effects of market volatilities on FARO Technologies 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 FARO Technologies with a short position of COMCAST. Check out your portfolio center. Please also check ongoing floating volatility patterns of FARO Technologies and COMCAST.
Diversification Opportunities for FARO Technologies and COMCAST
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between FARO and COMCAST is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding FARO Technologies 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 FARO Technologies 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 FARO Technologies 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 FARO Technologies i.e., FARO Technologies and COMCAST go up and down completely randomly.
Pair Corralation between FARO Technologies and COMCAST
Given the investment horizon of 90 days FARO Technologies is expected to generate 11.75 times more return on investment than COMCAST. However, FARO Technologies is 11.75 times more volatile than COMCAST P NEW. It trades about 0.26 of its potential returns per unit of risk. COMCAST P NEW is currently generating about -0.07 per unit of risk. If you would invest 1,769 in FARO Technologies on September 2, 2024 and sell it today you would earn a total of 856.00 from holding FARO Technologies or generate 48.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
FARO Technologies vs. COMCAST P NEW
Performance |
| Timeline |
| FARO Technologies |
| COMCAST P NEW |
FARO Technologies and COMCAST Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FARO Technologies and COMCAST
The main advantage of trading using opposite FARO Technologies and COMCAST positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FARO Technologies 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.| FARO Technologies vs. Coherent | FARO Technologies vs. ESCO Technologies | FARO Technologies vs. Mesa Laboratories | FARO Technologies vs. Vishay Precision Group |
| COMCAST vs. Western Digital | COMCAST vs. FARO Technologies | COMCAST vs. Radcom | COMCAST vs. National Beverage 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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