Correlation Between WideOpenWest and Comcast Corp
Can any of the company-specific risk be diversified away by investing in both WideOpenWest and Comcast Corp at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining WideOpenWest and Comcast Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WideOpenWest and Comcast Corp, you can compare the effects of market volatilities on WideOpenWest and Comcast Corp 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 WideOpenWest with a short position of Comcast Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of WideOpenWest and Comcast Corp.
Diversification Opportunities for WideOpenWest and Comcast Corp
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between WideOpenWest and Comcast is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding WideOpenWest and Comcast Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Comcast Corp and WideOpenWest 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 WideOpenWest are associated (or correlated) with Comcast Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Comcast Corp has no effect on the direction of WideOpenWest i.e., WideOpenWest and Comcast Corp go up and down completely randomly.
Pair Corralation between WideOpenWest and Comcast Corp
Considering the 90-day investment horizon WideOpenWest is expected to under-perform the Comcast Corp. In addition to that, WideOpenWest is 3.17 times more volatile than Comcast Corp. It trades about -0.01 of its total potential returns per unit of risk. Comcast Corp is currently generating about 0.04 per unit of volatility. If you would invest 3,613 in Comcast Corp on August 24, 2024 and sell it today you would earn a total of 734.00 from holding Comcast Corp or generate 20.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
WideOpenWest vs. Comcast Corp
Performance |
| Timeline |
| WideOpenWest |
| Comcast Corp |
WideOpenWest and Comcast Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WideOpenWest and Comcast Corp
The main advantage of trading using opposite WideOpenWest and Comcast Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WideOpenWest position performs unexpectedly, Comcast Corp 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 Corp will offset losses from the drop in Comcast Corp's long position.| WideOpenWest vs. KT Corporation | WideOpenWest vs. Telkom Indonesia Tbk | WideOpenWest vs. SK Telecom Co | WideOpenWest vs. PLDT Inc ADR |
| Comcast Corp vs. Eshallgo Class A | Comcast Corp vs. Amtech Systems | Comcast Corp vs. Gold Fields Ltd | Comcast Corp vs. Aegean Airlines SA |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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