Correlation Between COMCAST and Genuine Parts
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By analyzing existing cross correlation between COMCAST P NEW and Genuine Parts Co, you can compare the effects of market volatilities on COMCAST and Genuine Parts 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 Genuine Parts. Check out your portfolio center. Please also check ongoing floating volatility patterns of COMCAST and Genuine Parts.
Diversification Opportunities for COMCAST and Genuine Parts
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between COMCAST and Genuine is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding COMCAST P NEW and Genuine Parts Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genuine Parts 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 Genuine Parts. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genuine Parts has no effect on the direction of COMCAST i.e., COMCAST and Genuine Parts go up and down completely randomly.
Pair Corralation between COMCAST and Genuine Parts
Assuming the 90 days trading horizon COMCAST P NEW is expected to generate 0.7 times more return on investment than Genuine Parts. However, COMCAST P NEW is 1.43 times less risky than Genuine Parts. It trades about 0.09 of its potential returns per unit of risk. Genuine Parts Co is currently generating about -0.03 per unit of risk. If you would invest 8,948 in COMCAST P NEW on August 28, 2024 and sell it today you would earn a total of 550.00 from holding COMCAST P NEW or generate 6.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 57.14% |
| Values | Daily Returns |
COMCAST P NEW vs. Genuine Parts Co
Performance |
| Timeline |
| COMCAST P NEW |
| Genuine Parts |
COMCAST and Genuine Parts Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COMCAST and Genuine Parts
The main advantage of trading using opposite COMCAST and Genuine Parts positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COMCAST position performs unexpectedly, Genuine Parts 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 Genuine Parts will offset losses from the drop in Genuine Parts' long position.| COMCAST vs. The Coca Cola | COMCAST vs. JPMorgan Chase Co | COMCAST vs. Dupont De Nemours | COMCAST vs. Alcoa Corp |
| Genuine Parts vs. Steven Madden | Genuine Parts vs. Vera Bradley | Genuine Parts vs. Caleres | Genuine Parts vs. Rocky Brands |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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