Correlation Between Sporttotal and Comcast

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

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

Diversification Opportunities for Sporttotal and Comcast

0.84

Correlation Coefficient

Sporttotal  Comcast

Very poor diversification

The 3 months correlation between Sporttotal and Comcast is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Sporttotal AG and Comcast in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Comcast and Sporttotal 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 Sporttotal AG are associated (or correlated) with Comcast. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Comcast has no effect on the direction of Sporttotal i.e., Sporttotal and Comcast go up and down completely randomly.

Pair Corralation between Sporttotal and Comcast

Assuming the 90 days trading horizon Sporttotal AG is expected to generate 6.09 times more return on investment than Comcast. However, Sporttotal is 6.09 times more volatile than Comcast. It trades about -0.02 of its potential returns per unit of risk. Comcast is currently generating about -0.11 per unit of risk. If you would invest  42.00  in Sporttotal AG on December 2, 2024 and sell it today you would lose (22.00) from holding Sporttotal AG or give up 52.38% of portfolio value over 90 days.

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

Sporttotal AG  vs.  Comcast

Sporttotal AG

Risk-Adjusted Performance

Very Weak

Over the last 90 days Sporttotal AG has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's technical and fundamental indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Comcast

Risk-Adjusted Performance

Very Weak

Over the last 90 days Comcast has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Sporttotal and Comcast

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

The idea behind Sporttotal AG and Comcast 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.