Correlation Between Comcast Corp and Exco Technologies

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

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

Diversification Opportunities for Comcast Corp and Exco Technologies

0.24

Correlation Coefficient

Comcast Corp  Exco Technologies

Modest diversification

The 3 months correlation between Comcast and Exco is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Comcast Corp and Exco Technologies Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exco Technologies 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 Exco Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exco Technologies has no effect on the direction of Comcast Corp i.e., Comcast Corp and Exco Technologies go up and down completely randomly.

Pair Corralation between Comcast Corp and Exco Technologies

Assuming the 90 days horizon Comcast Corp is expected to under-perform the Exco Technologies. But the stock apears to be less risky and, when comparing its historical volatility, Comcast Corp is 1.29 times less risky than Exco Technologies. The stock trades about -0.02 of its potential returns per unit of risk. The Exco Technologies Limited is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  593.00  in Exco Technologies Limited on May 1, 2025 and sell it today you would earn a total of  100.00  from holding Exco Technologies Limited or generate 16.86% return on investment over 90 days.

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

Comcast Corp  vs.  Exco Technologies Limited

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.

Exco Technologies

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Exco Technologies Limited are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain fundamental indicators, Exco Technologies displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Comcast Corp and Exco Technologies

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

The idea behind Comcast Corp and Exco Technologies Limited 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.