Correlation Between Comcast Corp and Ab Small

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

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

Diversification Opportunities for Comcast Corp and Ab Small

0.7

Correlation Coefficient

Comcast Corp  Ab Small

Poor diversification

The 3 months correlation between Comcast and SCAVX is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Comcast Corp and Ab Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab Small Cap 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 Ab Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab Small Cap has no effect on the direction of Comcast Corp i.e., Comcast Corp and Ab Small go up and down completely randomly.

Pair Corralation between Comcast Corp and Ab Small

Assuming the 90 days horizon Comcast Corp is expected to under-perform the Ab Small. In addition to that, Comcast Corp is 1.11 times more volatile than Ab Small Cap. It trades about -0.03 of its total potential returns per unit of risk. Ab Small Cap is currently generating about 0.19 per unit of volatility. If you would invest  1,268  in Ab Small Cap on April 30, 2025 and sell it today you would earn a total of  177.00  from holding Ab Small Cap or generate 13.96% 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.  Ab Small Cap

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.

Ab Small Cap

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Ab Small Cap are ranked lower than 14 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Ab Small showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Comcast Corp and Ab Small

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

The idea behind Comcast Corp and Ab Small Cap 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.