Correlation Between Comcast Corp and Welltower

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

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

Diversification Opportunities for Comcast Corp and Welltower

-0.5

Correlation Coefficient

Comcast Corp  Welltower

Very good diversification

The 3 months correlation between Comcast and Welltower is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Comcast Corp and Welltower in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Welltower 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 Welltower. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Welltower has no effect on the direction of Comcast Corp i.e., Comcast Corp and Welltower go up and down completely randomly.

Pair Corralation between Comcast Corp and Welltower

Assuming the 90 days horizon Comcast Corp is expected to under-perform the Welltower. In addition to that, Comcast Corp is 1.11 times more volatile than Welltower. It trades about -0.16 of its total potential returns per unit of risk. Welltower is currently generating about 0.12 per unit of volatility. If you would invest  15,835  in Welltower on July 18, 2025 and sell it today you would earn a total of  1,399  from holding Welltower or generate 8.83% return on investment over 90 days.

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

Comcast Corp  vs.  Welltower

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 weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in November 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Welltower

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Welltower are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite quite weak essential indicators, Welltower may actually be approaching a critical reversion point that can send shares even higher in November 2025.

Pair Trading with Comcast Corp and Welltower

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

The idea behind Comcast Corp and Welltower 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.