Correlation Between Comcast Corp and China Construction

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

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

Diversification Opportunities for Comcast Corp and China Construction

-0.49

Correlation Coefficient

Comcast Corp  China Construction

Very good diversification

The 3 months correlation between Comcast and China is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Comcast Corp and China Construction Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Construction Bank 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 China Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Construction Bank has no effect on the direction of Comcast Corp i.e., Comcast Corp and China Construction go up and down completely randomly.

Pair Corralation between Comcast Corp and China Construction

Assuming the 90 days horizon Comcast Corp is expected to under-perform the China Construction. But the stock apears to be less risky and, when comparing its historical volatility, Comcast Corp is 2.52 times less risky than China Construction. The stock trades about -0.18 of its potential returns per unit of risk. The China Construction Bank is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest  102.00  in China Construction Bank on September 11, 2025 and sell it today you would lose (4.00) from holding China Construction Bank or give up 3.92% of portfolio value over 90 days.

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

Comcast Corp  vs.  China Construction Bank

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 abnormal performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in January 2026. The current disturbance may also be a sign of long term up-swing for the company investors.

China Construction Bank

Risk-Adjusted Performance

Weakest

Over the last 90 days China Construction Bank has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical indicators, China Construction is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Comcast Corp and China Construction

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

The idea behind Comcast Corp and China Construction Bank 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.