Correlation Between Comcast Corp and Electronics Fund

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

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

Diversification Opportunities for Comcast Corp and Electronics Fund

-0.13

Correlation Coefficient

Comcast Corp  Electronics Fund

Good diversification

The 3 months correlation between Comcast and Electronics is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Comcast Corp and Electronics Fund Investor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Electronics Fund Investor 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 Electronics Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Electronics Fund Investor has no effect on the direction of Comcast Corp i.e., Comcast Corp and Electronics Fund go up and down completely randomly.

Pair Corralation between Comcast Corp and Electronics Fund

Assuming the 90 days horizon Comcast Corp is expected to under-perform the Electronics Fund. But the stock apears to be less risky and, when comparing its historical volatility, Comcast Corp is 1.08 times less risky than Electronics Fund. The stock trades about -0.09 of its potential returns per unit of risk. The Electronics Fund Investor is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest  39,410  in Electronics Fund Investor on May 12, 2025 and sell it today you would earn a total of  8,555  from holding Electronics Fund Investor or generate 21.71% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Comcast Corp  vs.  Electronics Fund Investor

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.

Electronics Fund Investor

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Electronics Fund Investor are ranked lower than 17 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Electronics Fund showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Comcast Corp and Electronics Fund

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

The idea behind Comcast Corp and Electronics Fund Investor 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.