Correlation Between BBB Foods and COMCAST
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By analyzing existing cross correlation between BBB Foods and COMCAST P NEW, you can compare the effects of market volatilities on BBB Foods 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 BBB Foods with a short position of COMCAST. Check out your portfolio center. Please also check ongoing floating volatility patterns of BBB Foods and COMCAST.
Diversification Opportunities for BBB Foods and COMCAST
Significant diversification
The 3 months correlation between BBB and COMCAST is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding BBB Foods 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 BBB Foods 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 BBB Foods 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 BBB Foods i.e., BBB Foods and COMCAST go up and down completely randomly.
Pair Corralation between BBB Foods and COMCAST
Given the investment horizon of 90 days BBB Foods is expected to under-perform the COMCAST. In addition to that, BBB Foods is 1.77 times more volatile than COMCAST P NEW. It trades about -0.13 of its total potential returns per unit of risk. COMCAST P NEW is currently generating about -0.18 per unit of volatility. If you would invest 10,918 in COMCAST P NEW on September 13, 2024 and sell it today you would lose (594.00) from holding COMCAST P NEW or give up 5.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 68.18% |
| Values | Daily Returns |
BBB Foods vs. COMCAST P NEW
Performance |
| Timeline |
| BBB Foods |
| COMCAST P NEW |
BBB Foods and COMCAST Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BBB Foods and COMCAST
The main advantage of trading using opposite BBB Foods and COMCAST positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BBB Foods 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.| BBB Foods vs. Costco Wholesale Corp | BBB Foods vs. BJs Wholesale Club | BBB Foods vs. Dollar Tree | BBB Foods vs. Dollar General |
| COMCAST vs. RBC Bearings Incorporated | COMCAST vs. Raytech Holding Limited | COMCAST vs. Lincoln Electric Holdings | COMCAST vs. Estee Lauder Companies |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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