Correlation Between CMCSA and Dow Jones
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By analyzing existing cross correlation between CMCSA 65 15 OCT 35 and Dow Jones Industrial, you can compare the effects of market volatilities on CMCSA and Dow Jones 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 CMCSA with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of CMCSA and Dow Jones.
Diversification Opportunities for CMCSA and Dow Jones
Weak diversification
The 3 months correlation between CMCSA and Dow is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding CMCSA 65 15 OCT 35 and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial and CMCSA 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 CMCSA 65 15 OCT 35 are associated (or correlated) with Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of CMCSA i.e., CMCSA and Dow Jones go up and down completely randomly.
Pair Corralation between CMCSA and Dow Jones
Assuming the 90 days trading horizon CMCSA is expected to generate 1.26 times less return on investment than Dow Jones. In addition to that, CMCSA is 1.51 times more volatile than Dow Jones Industrial. It trades about 0.06 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.11 per unit of volatility. If you would invest 3,446,369 in Dow Jones Industrial on September 12, 2024 and sell it today you would earn a total of 978,414 from holding Dow Jones Industrial or generate 28.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 19.7% |
| Values | Daily Returns |
CMCSA 65 15 OCT 35 vs. Dow Jones Industrial
Performance |
| Timeline |
CMCSA and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
CMCSA 65 15 OCT 35
Pair trading matchups for CMCSA
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with CMCSA and Dow Jones
The main advantage of trading using opposite CMCSA and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CMCSA position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| CMCSA vs. Western Copper and | CMCSA vs. Pinterest | CMCSA vs. Definitive Healthcare Corp | CMCSA vs. Kaltura |
| Dow Jones vs. Aeye Inc | Dow Jones vs. Gentex | Dow Jones vs. Marine Products | Dow Jones vs. CarsalesCom Ltd ADR |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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