Correlation Between Comcast Corp and Swisscom

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

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

Diversification Opportunities for Comcast Corp and Swisscom

0.42

Correlation Coefficient

Comcast Corp  Swisscom

Very weak diversification

The 3 months correlation between Comcast and Swisscom is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Comcast Corp and Swisscom AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Swisscom AG 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 Swisscom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Swisscom AG has no effect on the direction of Comcast Corp i.e., Comcast Corp and Swisscom go up and down completely randomly.

Pair Corralation between Comcast Corp and Swisscom

Assuming the 90 days horizon Comcast Corp is expected to generate 1.48 times more return on investment than Swisscom. However, Comcast Corp is 1.48 times more volatile than Swisscom AG. It trades about 0.09 of its potential returns per unit of risk. Swisscom AG is currently generating about 0.11 per unit of risk. If you would invest  3,346  in Comcast Corp on April 26, 2025 and sell it today you would earn a total of  191.00  from holding Comcast Corp or generate 5.71% return on investment over 90 days.

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

Comcast Corp  vs.  Swisscom AG

Comcast Corp

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Comcast Corp are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. 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.

Swisscom AG

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Swisscom AG are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, Swisscom is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Comcast Corp and Swisscom

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

The idea behind Comcast Corp and Swisscom AG 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.