Correlation Between Comcast Corp and KonaTel
Can any of the company-specific risk be diversified away by investing in both Comcast Corp and KonaTel 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 KonaTel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Comcast Corp and KonaTel, you can compare the effects of market volatilities on Comcast Corp and KonaTel 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 KonaTel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Comcast Corp and KonaTel.
Diversification Opportunities for Comcast Corp and KonaTel
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Comcast and KonaTel is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Comcast Corp and KonaTel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KonaTel 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 KonaTel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KonaTel has no effect on the direction of Comcast Corp i.e., Comcast Corp and KonaTel go up and down completely randomly.
Pair Corralation between Comcast Corp and KonaTel
Assuming the 90 days horizon Comcast Corp is expected to generate 0.23 times more return on investment than KonaTel. However, Comcast Corp is 4.29 times less risky than KonaTel. It trades about 0.02 of its potential returns per unit of risk. KonaTel is currently generating about -0.01 per unit of risk. If you would invest 3,411 in Comcast Corp on October 5, 2024 and sell it today you would earn a total of 352.00 from holding Comcast Corp or generate 10.32% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 99.78% |
Values | Daily Returns |
Comcast Corp vs. KonaTel
Performance |
Timeline |
Comcast Corp |
KonaTel |
Comcast Corp and KonaTel Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Comcast Corp and KonaTel
The main advantage of trading using opposite Comcast Corp and KonaTel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Comcast Corp position performs unexpectedly, KonaTel 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 KonaTel will offset losses from the drop in KonaTel's long position.Comcast Corp vs. Home Federal Bancorp | Comcast Corp vs. TRI Pointe Homes | Comcast Corp vs. HP Inc | Comcast Corp vs. Chevron Corp |
Check out your portfolio center.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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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