Correlation Between Comcast Corp and Icon Long/short

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

By analyzing existing cross correlation between Comcast Corp and Icon Longshort Fund, you can compare the effects of market volatilities on Comcast Corp and Icon Long/short 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 Icon Long/short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Comcast Corp and Icon Long/short.

Diversification Opportunities for Comcast Corp and Icon Long/short

0.43

Correlation Coefficient

Comcast Corp  Icon Long/short

Very weak diversification

The 3 months correlation between Comcast and Icon is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Comcast Corp and Icon Longshort Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Icon Long/short 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 Icon Long/short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Icon Long/short has no effect on the direction of Comcast Corp i.e., Comcast Corp and Icon Long/short go up and down completely randomly.

Pair Corralation between Comcast Corp and Icon Long/short

Assuming the 90 days horizon Comcast Corp is expected to generate 27.49 times less return on investment than Icon Long/short. In addition to that, Comcast Corp is 1.17 times more volatile than Icon Longshort Fund. It trades about 0.01 of its total potential returns per unit of risk. Icon Longshort Fund is currently generating about 0.26 per unit of volatility. If you would invest  2,381  in Icon Longshort Fund on April 29, 2025 and sell it today you would earn a total of  446.00  from holding Icon Longshort Fund or generate 18.73% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.41%
Values	Daily Returns

Comcast Corp  vs.  Icon Longshort Fund

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.

Icon Long/short

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Icon Longshort Fund are ranked lower than 20 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Icon Long/short showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Comcast Corp and Icon Long/short

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

The idea behind Comcast Corp and Icon Longshort Fund 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 Transaction History module to view history of all your transactions and understand their impact on performance.