Correlation Between Constellation Brands and COMCAST
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By analyzing existing cross correlation between Constellation Brands Class and COMCAST P NEW, you can compare the effects of market volatilities on Constellation Brands 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 Constellation Brands with a short position of COMCAST. Check out your portfolio center. Please also check ongoing floating volatility patterns of Constellation Brands and COMCAST.
Diversification Opportunities for Constellation Brands and COMCAST
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Constellation and COMCAST is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Constellation Brands Class 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 Constellation Brands 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 Constellation Brands Class 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 Constellation Brands i.e., Constellation Brands and COMCAST go up and down completely randomly.
Pair Corralation between Constellation Brands and COMCAST
Considering the 90-day investment horizon Constellation Brands Class is expected to generate 0.82 times more return on investment than COMCAST. However, Constellation Brands Class is 1.21 times less risky than COMCAST. It trades about 0.02 of its potential returns per unit of risk. COMCAST P NEW is currently generating about -0.02 per unit of risk. If you would invest 23,211 in Constellation Brands Class on September 2, 2024 and sell it today you would earn a total of 884.00 from holding Constellation Brands Class or generate 3.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 56.85% |
| Values | Daily Returns |
Constellation Brands Class vs. COMCAST P NEW
Performance |
| Timeline |
| Constellation Brands |
| COMCAST P NEW |
Constellation Brands and COMCAST Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Constellation Brands and COMCAST
The main advantage of trading using opposite Constellation Brands and COMCAST positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Constellation Brands 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.| Constellation Brands vs. Brown Forman | Constellation Brands vs. Duckhorn Portfolio | Constellation Brands vs. MGP Ingredients | Constellation Brands vs. Brown Forman |
| COMCAST vs. Nascent Wine | COMCAST vs. CenterPoint Energy | COMCAST vs. Constellation Brands Class | COMCAST vs. Monster 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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