Correlation Between Comcast Corp and Matthews Asia

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

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

Diversification Opportunities for Comcast Corp and Matthews Asia

0.03

Correlation Coefficient

Comcast Corp  Matthews Asia

Significant diversification

The 3 months correlation between Comcast and Matthews is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Comcast Corp and Matthews Asia Innovators in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Matthews Asia Innovators 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 Matthews Asia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Matthews Asia Innovators has no effect on the direction of Comcast Corp i.e., Comcast Corp and Matthews Asia go up and down completely randomly.

Pair Corralation between Comcast Corp and Matthews Asia

Assuming the 90 days horizon Comcast Corp is expected to under-perform the Matthews Asia. In addition to that, Comcast Corp is 1.45 times more volatile than Matthews Asia Innovators. It trades about -0.06 of its total potential returns per unit of risk. Matthews Asia Innovators is currently generating about 0.26 per unit of volatility. If you would invest  1,346  in Matthews Asia Innovators on May 2, 2025 and sell it today you would earn a total of  200.00  from holding Matthews Asia Innovators or generate 14.86% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

Comcast Corp  vs.  Matthews Asia Innovators

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.

Matthews Asia Innovators

Risk-Adjusted Performance

Solid

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

Pair Trading with Comcast Corp and Matthews Asia

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

The idea behind Comcast Corp and Matthews Asia Innovators 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.