Correlation Between COMCAST and Nike
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By analyzing existing cross correlation between COMCAST PORATION and Nike Inc, you can compare the effects of market volatilities on COMCAST and Nike 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 Nike. Check out your portfolio center. Please also check ongoing floating volatility patterns of COMCAST and Nike.
Diversification Opportunities for COMCAST and Nike
Very weak diversification
The 3 months correlation between COMCAST and Nike is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding COMCAST PORATION and Nike Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nike Inc 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 PORATION are associated (or correlated) with Nike. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nike Inc has no effect on the direction of COMCAST i.e., COMCAST and Nike go up and down completely randomly.
Pair Corralation between COMCAST and Nike
Assuming the 90 days trading horizon COMCAST PORATION is expected to generate 0.19 times more return on investment than Nike. However, COMCAST PORATION is 5.18 times less risky than Nike. It trades about -0.31 of its potential returns per unit of risk. Nike Inc is currently generating about -0.17 per unit of risk. If you would invest 9,274 in COMCAST PORATION on August 26, 2024 and sell it today you would lose (401.00) from holding COMCAST PORATION or give up 4.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
COMCAST PORATION vs. Nike Inc
Performance |
| Timeline |
| COMCAST PORATION |
| Nike Inc |
COMCAST and Nike Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COMCAST and Nike
The main advantage of trading using opposite COMCAST and Nike positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COMCAST position performs unexpectedly, Nike 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 Nike will offset losses from the drop in Nike's long position.The idea behind COMCAST PORATION and Nike Inc pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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