Correlation Between Comcast Corp and Arrow Investment

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

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

Diversification Opportunities for Comcast Corp and Arrow Investment

-0.39

Correlation Coefficient

Comcast Corp  Arrow Investment

Very good diversification

The 3 months correlation between Comcast and Arrow is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Comcast Corp and Arrow Investment Advisors in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arrow Investment Advisors 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 Arrow Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arrow Investment Advisors has no effect on the direction of Comcast Corp i.e., Comcast Corp and Arrow Investment go up and down completely randomly.

Pair Corralation between Comcast Corp and Arrow Investment

Assuming the 90 days horizon Comcast Corp is expected to generate 0.71 times more return on investment than Arrow Investment. However, Comcast Corp is 1.41 times less risky than Arrow Investment. It trades about -0.07 of its potential returns per unit of risk. Arrow Investment Advisors is currently generating about -0.16 per unit of risk. If you would invest  3,516  in Comcast Corp on May 16, 2025 and sell it today you would lose (222.00) from holding Comcast Corp or give up 6.31% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	42.62%
Values	Daily Returns

Comcast Corp  vs.  Arrow Investment Advisors

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.

Arrow Investment Advisors

Risk-Adjusted Performance

Weakest

Over the last 90 days Arrow Investment Advisors has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Etf's basic indicators remain comparatively stable which may send shares a bit higher in September 2025. The newest uproar may also be a sign of mid-term up-swing for the exchange-traded fund private investors.

Pair Trading with Comcast Corp and Arrow Investment

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

The idea behind Comcast Corp and Arrow Investment Advisors 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.