Correlation Between COMCAST and EMCOR
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By analyzing existing cross correlation between COMCAST P NEW and EMCOR Group, you can compare the effects of market volatilities on COMCAST and EMCOR 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 COMCAST with a short position of EMCOR. Check out your portfolio center. Please also check ongoing floating volatility patterns of COMCAST and EMCOR.
Diversification Opportunities for COMCAST and EMCOR
Average diversification
The 3 months correlation between COMCAST and EMCOR is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding COMCAST P NEW and EMCOR Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EMCOR Group and COMCAST 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 COMCAST P NEW are associated (or correlated) with EMCOR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EMCOR Group has no effect on the direction of COMCAST i.e., COMCAST and EMCOR go up and down completely randomly.
Pair Corralation between COMCAST and EMCOR
Assuming the 90 days trading horizon COMCAST is expected to generate 13.69 times less return on investment than EMCOR. But when comparing it to its historical volatility, COMCAST P NEW is 1.6 times less risky than EMCOR. It trades about 0.03 of its potential returns per unit of risk. EMCOR Group is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 45,321 in EMCOR Group on September 2, 2024 and sell it today you would earn a total of 5,691 from holding EMCOR Group or generate 12.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 38.1% |
| Values | Daily Returns |
COMCAST P NEW vs. EMCOR Group
Performance |
| Timeline |
| COMCAST P NEW |
| EMCOR Group |
COMCAST and EMCOR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COMCAST and EMCOR
The main advantage of trading using opposite COMCAST and EMCOR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COMCAST position performs unexpectedly, EMCOR 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 EMCOR will offset losses from the drop in EMCOR's long position.| COMCAST vs. EMCOR Group | COMCAST vs. Topbuild Corp | COMCAST vs. Fomento Economico Mexicano | COMCAST vs. The Coca Cola |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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