Correlation Between Comcast Corp and Cooper Stnd

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

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

Diversification Opportunities for Comcast Corp and Cooper Stnd

0.34

Correlation Coefficient

Comcast Corp  Cooper Stnd

Weak diversification

The 3 months correlation between Comcast and Cooper is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Comcast Corp and Cooper Stnd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cooper Stnd 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 Cooper Stnd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cooper Stnd has no effect on the direction of Comcast Corp i.e., Comcast Corp and Cooper Stnd go up and down completely randomly.

Pair Corralation between Comcast Corp and Cooper Stnd

Assuming the 90 days horizon Comcast Corp is expected to generate 91.45 times less return on investment than Cooper Stnd. But when comparing it to its historical volatility, Comcast Corp is 5.07 times less risky than Cooper Stnd. It trades about 0.01 of its potential returns per unit of risk. Cooper Stnd is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  1,495  in Cooper Stnd on April 29, 2025 and sell it today you would earn a total of  931.00  from holding Cooper Stnd or generate 62.27% return on investment over 90 days.

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

Comcast Corp  vs.  Cooper Stnd

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.

Cooper Stnd

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Cooper Stnd are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating basic indicators, Cooper Stnd unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Comcast Corp and Cooper Stnd

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

The idea behind Comcast Corp and Cooper Stnd 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..