Correlation Between Comcast Corp and ProShares UltraShort

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

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

Diversification Opportunities for Comcast Corp and ProShares UltraShort

-0.21

Correlation Coefficient

Comcast Corp  ProShares UltraShort

Very good diversification

The 3 months correlation between Comcast and ProShares is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Comcast Corp and ProShares UltraShort Oil in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares UltraShort Oil 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 ProShares UltraShort. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares UltraShort Oil has no effect on the direction of Comcast Corp i.e., Comcast Corp and ProShares UltraShort go up and down completely randomly.

Pair Corralation between Comcast Corp and ProShares UltraShort

Assuming the 90 days horizon Comcast Corp is expected to under-perform the ProShares UltraShort. But the stock apears to be less risky and, when comparing its historical volatility, Comcast Corp is 1.62 times less risky than ProShares UltraShort. The stock trades about -0.1 of its potential returns per unit of risk. The ProShares UltraShort Oil is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  3,754  in ProShares UltraShort Oil on May 14, 2025 and sell it today you would earn a total of  5.00  from holding ProShares UltraShort Oil or generate 0.13% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

Comcast Corp  vs.  ProShares UltraShort Oil

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 latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

ProShares UltraShort Oil

Risk-Adjusted Performance

Weak

Over the last 90 days ProShares UltraShort Oil has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, ProShares UltraShort 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 ProShares UltraShort

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

The idea behind Comcast Corp and ProShares UltraShort Oil 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.