Correlation Between Comcast Corp and Cass Information

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

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

Diversification Opportunities for Comcast Corp and Cass Information

0.79

Correlation Coefficient

Comcast Corp  Cass Information

Poor diversification

The 3 months correlation between Comcast and Cass is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Comcast Corp and Cass Information Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cass Information Systems 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 Cass Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cass Information Systems has no effect on the direction of Comcast Corp i.e., Comcast Corp and Cass Information go up and down completely randomly.

Pair Corralation between Comcast Corp and Cass Information

Assuming the 90 days horizon Comcast Corp is expected to generate 0.89 times more return on investment than Cass Information. However, Comcast Corp is 1.12 times less risky than Cass Information. It trades about -0.03 of its potential returns per unit of risk. Cass Information Systems is currently generating about -0.03 per unit of risk. If you would invest  3,415  in Comcast Corp on May 2, 2025 and sell it today you would lose (92.00) from holding Comcast Corp or give up 2.69% of portfolio value over 90 days.

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

Comcast Corp  vs.  Cass Information Systems

Comcast Corp

Risk-Adjusted Performance

Very Weak

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.

Cass Information Systems

Risk-Adjusted Performance

Very Weak

Over the last 90 days Cass Information Systems has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Cass Information is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Comcast Corp and Cass Information

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

The idea behind Comcast Corp and Cass Information Systems 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.