Correlation Between Nasdaq and COMCAST
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By analyzing existing cross correlation between Nasdaq Inc and COMCAST P NEW, you can compare the effects of market volatilities on Nasdaq 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 Nasdaq with a short position of COMCAST. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nasdaq and COMCAST.
Diversification Opportunities for Nasdaq and COMCAST
Good diversification
The 3 months correlation between Nasdaq and COMCAST is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Nasdaq Inc 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 Nasdaq 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 Nasdaq Inc 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 Nasdaq i.e., Nasdaq and COMCAST go up and down completely randomly.
Pair Corralation between Nasdaq and COMCAST
Given the investment horizon of 90 days Nasdaq is expected to generate 23.85 times less return on investment than COMCAST. But when comparing it to its historical volatility, Nasdaq Inc is 50.91 times less risky than COMCAST. It trades about 0.12 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 Against |
| Strength | Insignificant |
| Accuracy | 70.7% |
| Values | Daily Returns |
Nasdaq Inc vs. COMCAST P NEW
Performance |
| Timeline |
| Nasdaq Inc |
| COMCAST P NEW |
Nasdaq and COMCAST Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nasdaq and COMCAST
The main advantage of trading using opposite Nasdaq and COMCAST positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nasdaq 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 Nasdaq Inc 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. 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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