Correlation Between Comcast Corp and Matrix

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

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

Diversification Opportunities for Comcast Corp and Matrix

0.61

Correlation Coefficient

Comcast Corp  Matrix

Poor diversification

The 3 months correlation between Comcast and Matrix is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Comcast Corp and Matrix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Matrix 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 Matrix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Matrix has no effect on the direction of Comcast Corp i.e., Comcast Corp and Matrix go up and down completely randomly.

Pair Corralation between Comcast Corp and Matrix

Assuming the 90 days horizon Comcast Corp is expected to generate 212.58 times less return on investment than Matrix. But when comparing it to its historical volatility, Comcast Corp is 1.51 times less risky than Matrix. It trades about 0.0 of its potential returns per unit of risk. Matrix is currently generating about 0.36 of returns per unit of risk over similar time horizon. If you would invest  883,142  in Matrix on April 29, 2025 and sell it today you would earn a total of  349,858  from holding Matrix or generate 39.62% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	79.03%
Values	Daily Returns

Comcast Corp  vs.  Matrix

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.

Matrix

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Matrix are ranked lower than 28 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Matrix sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Comcast Corp and Matrix

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

The idea behind Comcast Corp and Matrix 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.