Correlation Between Guangdong Investment and COMCAST
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By analyzing existing cross correlation between Guangdong Investment Limited and COMCAST P NEW, you can compare the effects of market volatilities on Guangdong Investment 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 Guangdong Investment with a short position of COMCAST. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Investment and COMCAST.
Diversification Opportunities for Guangdong Investment and COMCAST
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangdong and COMCAST is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Investment Limited 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 Guangdong Investment 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 Guangdong Investment Limited 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 Guangdong Investment i.e., Guangdong Investment and COMCAST go up and down completely randomly.
Pair Corralation between Guangdong Investment and COMCAST
Assuming the 90 days horizon Guangdong Investment is expected to generate 76.35 times less return on investment than COMCAST. But when comparing it to its historical volatility, Guangdong Investment Limited is 10.98 times less risky than COMCAST. It trades about 0.01 of its potential returns per unit of risk. COMCAST P NEW is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 9,112 in COMCAST P NEW on September 2, 2024 and sell it today you would earn a total of 464.00 from holding COMCAST P NEW or generate 5.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 72.25% |
| Values | Daily Returns |
Guangdong Investment Limited vs. COMCAST P NEW
Performance |
| Timeline |
| Guangdong Investment |
| COMCAST P NEW |
Guangdong Investment and COMCAST Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Investment and COMCAST
The main advantage of trading using opposite Guangdong Investment and COMCAST positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Investment 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.| Guangdong Investment vs. Essential Utilities | Guangdong Investment vs. Anhui Conch Cement | Guangdong Investment vs. Endesa SA ADR | Guangdong Investment vs. HUMANA INC |
| COMCAST vs. Cedar Realty Trust | COMCAST vs. Fast Retailing Co | COMCAST vs. Coupang LLC | COMCAST vs. Zoom Video Communications |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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