Correlation Between Comcast Corp and First Trust

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

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

Diversification Opportunities for Comcast Corp and First Trust

0.76

Correlation Coefficient

Comcast Corp  First Trust

Poor diversification

The 3 months correlation between Comcast and First is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Comcast Corp and First Trust Mid in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Trust Mid 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 First Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Trust Mid has no effect on the direction of Comcast Corp i.e., Comcast Corp and First Trust go up and down completely randomly.

Pair Corralation between Comcast Corp and First Trust

Assuming the 90 days horizon Comcast Corp is expected to generate 11.51 times less return on investment than First Trust. In addition to that, Comcast Corp is 1.29 times more volatile than First Trust Mid. It trades about 0.01 of its total potential returns per unit of risk. First Trust Mid is currently generating about 0.12 per unit of volatility. If you would invest  3,407  in First Trust Mid on April 29, 2025 and sell it today you would earn a total of  254.00  from holding First Trust Mid or generate 7.46% 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.  First Trust Mid

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.

First Trust Mid

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in First Trust Mid are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady primary indicators, First Trust may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Comcast Corp and First Trust

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

The idea behind Comcast Corp and First Trust Mid 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 Transaction History module to view history of all your transactions and understand their impact on performance.