Correlation Between Comcast Corp and First Eagle

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

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

Diversification Opportunities for Comcast Corp and First Eagle

0.14

Correlation Coefficient

Comcast Corp  First Eagle

Average diversification

The 3 months correlation between Comcast and First is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Comcast Corp and First Eagle Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Eagle Value 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 First Eagle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Eagle Value has no effect on the direction of Comcast Corp i.e., Comcast Corp and First Eagle go up and down completely randomly.

Pair Corralation between Comcast Corp and First Eagle

Assuming the 90 days horizon Comcast Corp is expected to under-perform the First Eagle. In addition to that, Comcast Corp is 2.79 times more volatile than First Eagle Value. It trades about -0.09 of its total potential returns per unit of risk. First Eagle Value is currently generating about 0.15 per unit of volatility. If you would invest  2,170  in First Eagle Value on May 10, 2025 and sell it today you would earn a total of  95.00  from holding First Eagle Value or generate 4.38% return on investment over 90 days.

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

Comcast Corp  vs.  First Eagle Value

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.

First Eagle Value

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in First Eagle Value are ranked lower than 11 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, First Eagle is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Comcast Corp and First Eagle

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

The idea behind Comcast Corp and First Eagle Value 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.

Check out your portfolio center.

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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.