Correlation Between Comcast Corp and FT Cboe

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

By analyzing existing cross correlation between Comcast Corp and FT Cboe Vest, you can compare the effects of market volatilities on Comcast Corp and FT Cboe 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 FT Cboe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Comcast Corp and FT Cboe.

Diversification Opportunities for Comcast Corp and FT Cboe

-0.36

Correlation Coefficient

Comcast Corp  FT Cboe

Very good diversification

The 3 months correlation between Comcast and BUFD is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Comcast Corp and FT Cboe Vest in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FT Cboe Vest 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 FT Cboe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FT Cboe Vest has no effect on the direction of Comcast Corp i.e., Comcast Corp and FT Cboe go up and down completely randomly.

Pair Corralation between Comcast Corp and FT Cboe

Assuming the 90 days horizon Comcast Corp is expected to under-perform the FT Cboe. In addition to that, Comcast Corp is 3.79 times more volatile than FT Cboe Vest. It trades about -0.07 of its total potential returns per unit of risk. FT Cboe Vest is currently generating about 0.22 per unit of volatility. If you would invest  2,584  in FT Cboe Vest on May 17, 2025 and sell it today you would earn a total of  133.00  from holding FT Cboe Vest or generate 5.15% return on investment over 90 days.

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

Comcast Corp  vs.  FT Cboe Vest

Comcast Corp

Risk-Adjusted Performance

Weakest

Over the last 90 days Comcast Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Comcast Corp is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

FT Cboe Vest

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in FT Cboe Vest are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound technical and fundamental indicators, FT Cboe 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 FT Cboe

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

The idea behind Comcast Corp and FT Cboe Vest 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.

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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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.