Correlation Between Comcast Corp and Tactile Systems

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

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

Diversification Opportunities for Comcast Corp and Tactile Systems

-0.54

Correlation Coefficient

Comcast Corp  Tactile Systems

Excellent diversification

The 3 months correlation between Comcast and Tactile is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Comcast Corp and Tactile Systems Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tactile Systems Tech 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 Tactile Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tactile Systems Tech has no effect on the direction of Comcast Corp i.e., Comcast Corp and Tactile Systems go up and down completely randomly.

Pair Corralation between Comcast Corp and Tactile Systems

Assuming the 90 days horizon Comcast Corp is expected to under-perform the Tactile Systems. But the stock apears to be less risky and, when comparing its historical volatility, Comcast Corp is 3.08 times less risky than Tactile Systems. The stock trades about -0.09 of its potential returns per unit of risk. The Tactile Systems Technology is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  958.00  in Tactile Systems Technology on May 14, 2025 and sell it today you would earn a total of  259.00  from holding Tactile Systems Technology or generate 27.04% return on investment over 90 days.

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

Comcast Corp  vs.  Tactile Systems Technology

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.

Tactile Systems Tech

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Tactile Systems Technology are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak primary indicators, Tactile Systems exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Comcast Corp and Tactile Systems

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

The idea behind Comcast Corp and Tactile Systems Technology 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.