Correlation Between Microsoft and COMCAST
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By analyzing existing cross correlation between Microsoft and COMCAST P NEW, you can compare the effects of market volatilities on Microsoft 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 Microsoft with a short position of COMCAST. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microsoft and COMCAST.
Diversification Opportunities for Microsoft and COMCAST
Modest diversification
The 3 months correlation between Microsoft and COMCAST is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Microsoft 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 Microsoft 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 Microsoft 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 Microsoft i.e., Microsoft and COMCAST go up and down completely randomly.
Pair Corralation between Microsoft and COMCAST
Given the investment horizon of 90 days Microsoft is expected to generate 1.06 times more return on investment than COMCAST. However, Microsoft is 1.06 times more volatile than COMCAST P NEW. It trades about -0.04 of its potential returns per unit of risk. COMCAST P NEW is currently generating about -0.15 per unit of risk. If you would invest 43,109 in Microsoft on August 30, 2024 and sell it today you would lose (810.00) from holding Microsoft or give up 1.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 73.91% |
| Values | Daily Returns |
Microsoft vs. COMCAST P NEW
Performance |
| Timeline |
| Microsoft |
| COMCAST P NEW |
Microsoft and COMCAST Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microsoft and COMCAST
The main advantage of trading using opposite Microsoft and COMCAST positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microsoft 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.| Microsoft vs. Palo Alto Networks | Microsoft vs. Uipath Inc | Microsoft vs. Block Inc | Microsoft vs. Adobe Systems Incorporated |
| COMCAST vs. Harmony Gold Mining | COMCAST vs. Exchange Bankshares | COMCAST vs. Juniata Valley Financial | COMCAST vs. Avient 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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