Correlation Between Comcast Corp and Innovator

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

By analyzing existing cross correlation between Comcast Corp and Innovator SP 500, you can compare the effects of market volatilities on Comcast Corp and Innovator 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 Innovator. Check out your portfolio center. Please also check ongoing floating volatility patterns of Comcast Corp and Innovator.

Diversification Opportunities for Comcast Corp and Innovator

-0.15

Correlation Coefficient

Comcast Corp  Innovator

Good diversification

The 3 months correlation between Comcast and Innovator is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Comcast Corp and Innovator SP 500 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Innovator SP 500 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 Innovator. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Innovator SP 500 has no effect on the direction of Comcast Corp i.e., Comcast Corp and Innovator go up and down completely randomly.

Pair Corralation between Comcast Corp and Innovator

Assuming the 90 days horizon Comcast Corp is expected to under-perform the Innovator. In addition to that, Comcast Corp is 5.38 times more volatile than Innovator SP 500. It trades about -0.1 of its total potential returns per unit of risk. Innovator SP 500 is currently generating about 0.23 per unit of volatility. If you would invest  3,646  in Innovator SP 500 on May 14, 2025 and sell it today you would earn a total of  130.00  from holding Innovator SP 500 or generate 3.57% return on investment over 90 days.

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

Comcast Corp  vs.  Innovator SP 500

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.

Innovator SP 500

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Innovator SP 500 are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable basic indicators, Innovator is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Comcast Corp and Innovator

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

The idea behind Comcast Corp and Innovator SP 500 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.