Correlation Between Comcast Corp and Direxion Monthly

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

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

Diversification Opportunities for Comcast Corp and Direxion Monthly

-0.72

Correlation Coefficient

Comcast Corp  Direxion Monthly

Pay attention - limited upside

The 3 months correlation between Comcast and Direxion is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Comcast Corp and Direxion Monthly Sp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Direxion Monthly 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 Direxion Monthly. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Direxion Monthly has no effect on the direction of Comcast Corp i.e., Comcast Corp and Direxion Monthly go up and down completely randomly.

Pair Corralation between Comcast Corp and Direxion Monthly

Assuming the 90 days horizon Comcast Corp is expected to under-perform the Direxion Monthly. In addition to that, Comcast Corp is 1.4 times more volatile than Direxion Monthly Sp. It trades about -0.16 of its total potential returns per unit of risk. Direxion Monthly Sp is currently generating about 0.21 per unit of volatility. If you would invest  7,052  in Direxion Monthly Sp on July 4, 2025 and sell it today you would earn a total of  908.00  from holding Direxion Monthly Sp or generate 12.88% return on investment over 90 days.

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

Comcast Corp  vs.  Direxion Monthly Sp

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 weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in November 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Direxion Monthly

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Direxion Monthly Sp are ranked lower than 16 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak essential indicators, Direxion Monthly may actually be approaching a critical reversion point that can send shares even higher in November 2025.

Pair Trading with Comcast Corp and Direxion Monthly

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

The idea behind Comcast Corp and Direxion Monthly Sp 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.