Correlation Between Comcast Corp and Fidelity Flex

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

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

Diversification Opportunities for Comcast Corp and Fidelity Flex

0.67

Correlation Coefficient

Comcast Corp  Fidelity Flex

Poor diversification

The 3 months correlation between Comcast and Fidelity is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Comcast Corp and Fidelity Flex Freedom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Flex Freedom 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 Fidelity Flex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Flex Freedom has no effect on the direction of Comcast Corp i.e., Comcast Corp and Fidelity Flex go up and down completely randomly.

Pair Corralation between Comcast Corp and Fidelity Flex

Assuming the 90 days horizon Comcast Corp is expected to under-perform the Fidelity Flex. In addition to that, Comcast Corp is 2.17 times more volatile than Fidelity Flex Freedom. It trades about -0.02 of its total potential returns per unit of risk. Fidelity Flex Freedom is currently generating about 0.31 per unit of volatility. If you would invest  1,283  in Fidelity Flex Freedom on May 1, 2025 and sell it today you would earn a total of  151.00  from holding Fidelity Flex Freedom or generate 11.77% return on investment over 90 days.

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

Comcast Corp  vs.  Fidelity Flex Freedom

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.

Fidelity Flex Freedom

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Fidelity Flex Freedom are ranked lower than 24 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Fidelity Flex may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Comcast Corp and Fidelity Flex

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

The idea behind Comcast Corp and Fidelity Flex Freedom 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.