Correlation Between Shenandoah Telecommunicatio and Comcast Corp

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

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

Diversification Opportunities for Shenandoah Telecommunicatio and Comcast Corp

0.51

Correlation Coefficient

Shenandoah Telecommunicatio  Comcast Corp

Very weak diversification

The 3 months correlation between Shenandoah and Comcast is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Shenandoah Telecommunications and Comcast Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Comcast Corp and Shenandoah Telecommunicatio 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 Shenandoah Telecommunications Co are associated (or correlated) with Comcast Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Comcast Corp has no effect on the direction of Shenandoah Telecommunicatio i.e., Shenandoah Telecommunicatio and Comcast Corp go up and down completely randomly.

Pair Corralation between Shenandoah Telecommunicatio and Comcast Corp

Given the investment horizon of 90 days Shenandoah Telecommunications Co is expected to generate 1.36 times more return on investment than Comcast Corp. However, Shenandoah Telecommunicatio is 1.36 times more volatile than Comcast Corp. It trades about 0.07 of its potential returns per unit of risk. Comcast Corp is currently generating about 0.02 per unit of risk. If you would invest  1,242  in Shenandoah Telecommunications Co on December 28, 2024 and sell it today you would earn a total of  106.00  from holding Shenandoah Telecommunications Co or generate 8.53% return on investment over 90 days.

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

Shenandoah Telecommunications   vs.  Comcast Corp

Shenandoah Telecommunicatio

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Shenandoah Telecommunications Co are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very weak technical and fundamental indicators, Shenandoah Telecommunicatio may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Comcast Corp

Risk-Adjusted Performance

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Comcast Corp are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. 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.

Pair Trading with Shenandoah Telecommunicatio and Comcast Corp

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

The idea behind Shenandoah Telecommunications Co and Comcast 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.