Correlation Between Asian Pay and Comcast Corp
Can any of the company-specific risk be diversified away by investing in both Asian Pay 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 Asian Pay and Comcast Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asian Pay Television and Comcast Corp, you can compare the effects of market volatilities on Asian Pay 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 Asian Pay with a short position of Comcast Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asian Pay and Comcast Corp.
Diversification Opportunities for Asian Pay and Comcast Corp
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Asian and Comcast is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Asian Pay Television and Comcast Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Comcast Corp and Asian Pay 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 Asian Pay Television 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 Asian Pay i.e., Asian Pay and Comcast Corp go up and down completely randomly.
Pair Corralation between Asian Pay and Comcast Corp
Assuming the 90 days horizon Asian Pay Television is expected to under-perform the Comcast Corp. In addition to that, Asian Pay is 3.11 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 0.01 per unit of volatility. If you would invest 3,925 in Comcast Corp on January 24, 2024 and sell it today you would earn a total of 132.00 from holding Comcast Corp or generate 3.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 67.47% |
| Values | Daily Returns |
Asian Pay Television vs. Comcast Corp
Performance |
| Timeline |
| Asian Pay Television |
| Comcast Corp |
Asian Pay and Comcast Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asian Pay and Comcast Corp
The main advantage of trading using opposite Asian Pay and Comcast Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asian Pay 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.| Asian Pay vs. Liberty Media | Asian Pay vs. Warner Music Group | Asian Pay vs. Madison Square Garden | Asian Pay vs. News Corp B |
| Comcast Corp vs. Liberty Global PLC | Comcast Corp vs. Shenandoah Telecommunications Co | Comcast Corp vs. Liberty Global PLC | Comcast Corp vs. Liberty Latin America |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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