Correlation Between Comcast Corp and Nexxen International

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

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

Diversification Opportunities for Comcast Corp and Nexxen International

-0.54

Correlation Coefficient

Comcast Corp  Nexxen International

Excellent diversification

The 3 months correlation between Comcast and Nexxen is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Comcast Corp and Nexxen International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nexxen International 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 Nexxen International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nexxen International has no effect on the direction of Comcast Corp i.e., Comcast Corp and Nexxen International go up and down completely randomly.

Pair Corralation between Comcast Corp and Nexxen International

Assuming the 90 days horizon Comcast Corp is expected to under-perform the Nexxen International. But the stock apears to be less risky and, when comparing its historical volatility, Comcast Corp is 2.1 times less risky than Nexxen International. The stock trades about -0.08 of its potential returns per unit of risk. The Nexxen International is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  763.00  in Nexxen International on October 10, 2024 and sell it today you would earn a total of  262.00  from holding Nexxen International or generate 34.34% 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.  Nexxen International

Comcast Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Comcast Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unfluctuating performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Nexxen International

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Nexxen International are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, Nexxen International displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Comcast Corp and Nexxen International

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

The idea behind Comcast Corp and Nexxen International 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.