Correlation Between NYSE Composite and COMCAST
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By analyzing existing cross correlation between NYSE Composite and COMCAST P NEW, you can compare the effects of market volatilities on NYSE Composite 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 NYSE Composite with a short position of COMCAST. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and COMCAST.
Diversification Opportunities for NYSE Composite and COMCAST
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between NYSE and COMCAST is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite 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 NYSE Composite 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 NYSE Composite 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 NYSE Composite i.e., NYSE Composite and COMCAST go up and down completely randomly.
Pair Corralation between NYSE Composite and COMCAST
Assuming the 90 days trading horizon NYSE Composite is expected to generate 166.99 times less return on investment than COMCAST. But when comparing it to its historical volatility, NYSE Composite is 146.93 times less risky than COMCAST. It trades about 0.08 of its potential returns per unit of risk. COMCAST P NEW is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 7,989 in COMCAST P NEW on November 28, 2024 and sell it today you would lose (347.00) from holding COMCAST P NEW or give up 4.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 93.91% |
| Values | Daily Returns |
NYSE Composite vs. COMCAST P NEW
Performance |
| Timeline |
NYSE Composite and COMCAST Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
COMCAST P NEW
Pair trading matchups for COMCAST
Pair Trading with NYSE Composite and COMCAST
The main advantage of trading using opposite NYSE Composite and COMCAST positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite 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.| NYSE Composite vs. Inter Parfums | NYSE Composite vs. Amkor Technology | NYSE Composite vs. Unilever PLC ADR | NYSE Composite vs. Estee Lauder Companies |
| COMCAST vs. AMCON Distributing | COMCAST vs. JD Sports Fashion | COMCAST vs. SunOpta | COMCAST vs. Smithfield Foods, Common |
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..
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