Correlation Between Comcast Corp and Green Zebra

Can any of the company-specific risk be diversified away by investing in both Comcast Corp and Green Zebra 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 Comcast Corp and Green Zebra into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Comcast Corp and Green Zebra International, you can compare the effects of market volatilities on Comcast Corp and Green Zebra 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 Corp with a short position of Green Zebra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Comcast Corp and Green Zebra.

Diversification Opportunities for Comcast Corp and Green Zebra

0.0

Correlation Coefficient

Comcast Corp  Green Zebra

Pay attention - limited upside

The 3 months correlation between Comcast and Green is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Comcast Corp and Green Zebra International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Green Zebra International and Comcast Corp 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 Corp are associated (or correlated) with Green Zebra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Green Zebra International has no effect on the direction of Comcast Corp i.e., Comcast Corp and Green Zebra go up and down completely randomly.

Pair Corralation between Comcast Corp and Green Zebra

If you would invest  3,921  in Comcast Corp on September 2, 2024 and sell it today you would earn a total of  398.00  from holding Comcast Corp or generate 10.15% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Comcast Corp  vs.  Green Zebra International

Comcast Corp

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Comcast Corp are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Comcast Corp may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Green Zebra International

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Green Zebra International has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound forward indicators, Green Zebra is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Comcast Corp and Green Zebra

The main advantage of trading using opposite Comcast Corp and Green Zebra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Comcast Corp position performs unexpectedly, Green Zebra 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 Green Zebra will offset losses from the drop in Green Zebra's long position.

The idea behind Comcast Corp and Green Zebra International 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.