Correlation Between Comcast Corp and IClick Interactive

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

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

Diversification Opportunities for Comcast Corp and IClick Interactive

0.23

Correlation Coefficient

Comcast Corp  IClick Interactive

Modest diversification

The 3 months correlation between Comcast and IClick is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Comcast Corp and iClick Interactive Asia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iClick Interactive Asia 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 IClick Interactive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iClick Interactive Asia has no effect on the direction of Comcast Corp i.e., Comcast Corp and IClick Interactive go up and down completely randomly.

Pair Corralation between Comcast Corp and IClick Interactive

Assuming the 90 days horizon Comcast Corp is expected to under-perform the IClick Interactive. But the stock apears to be less risky and, when comparing its historical volatility, Comcast Corp is 3.18 times less risky than IClick Interactive. The stock trades about -0.03 of its potential returns per unit of risk. The iClick Interactive Asia is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  816.00  in iClick Interactive Asia on December 20, 2024 and sell it today you would earn a total of  108.00  from holding iClick Interactive Asia or generate 13.24% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	91.67%
Values	Daily Returns

Comcast Corp  vs.  iClick Interactive Asia

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 recent stock price disturbance, may contribute to short-term losses for the investors.

iClick Interactive Asia

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in iClick Interactive Asia are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite quite fragile essential indicators, IClick Interactive disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Comcast Corp and IClick Interactive

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

The idea behind Comcast Corp and iClick Interactive Asia 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.