Correlation Between Comcast Holdings and Sitka Gold

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

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

Diversification Opportunities for Comcast Holdings and Sitka Gold

0.14

Correlation Coefficient

Comcast Holdings  Sitka Gold

Average diversification

The 3 months correlation between Comcast and Sitka is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Comcast Holdings Corp and Sitka Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sitka Gold Corp and Comcast Holdings 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 Holdings Corp are associated (or correlated) with Sitka Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sitka Gold Corp has no effect on the direction of Comcast Holdings i.e., Comcast Holdings and Sitka Gold go up and down completely randomly.

Pair Corralation between Comcast Holdings and Sitka Gold

Considering the 90-day investment horizon Comcast Holdings Corp is expected to generate 15.97 times more return on investment than Sitka Gold. However, Comcast Holdings is 15.97 times more volatile than Sitka Gold Corp. It trades about 0.09 of its potential returns per unit of risk. Sitka Gold Corp is currently generating about 0.06 per unit of risk. If you would invest  5,400  in Comcast Holdings Corp on September 29, 2024 and sell it today you would earn a total of  707.00  from holding Comcast Holdings Corp or generate 13.09% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	54.93%
Values	Daily Returns

Comcast Holdings Corp  vs.  Sitka Gold Corp

Comcast Holdings Corp

Risk-Adjusted Performance

0 of 100

Modest

Over the last 90 days Comcast Holdings Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong fundamental indicators, Comcast Holdings is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Sitka Gold Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Sitka Gold Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable forward-looking signals, Sitka Gold is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Comcast Holdings and Sitka Gold

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

The idea behind Comcast Holdings Corp and Sitka Gold Corp 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.