Correlation Between Comcast Corp and PIMCO RAFI
Can any of the company-specific risk be diversified away by investing in both Comcast Corp and PIMCO RAFI 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 PIMCO RAFI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Comcast Corp and PIMCO RAFI Dynamic, you can compare the effects of market volatilities on Comcast Corp and PIMCO RAFI 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 PIMCO RAFI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Comcast Corp and PIMCO RAFI.
Diversification Opportunities for Comcast Corp and PIMCO RAFI
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Comcast and PIMCO is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Comcast Corp and PIMCO RAFI Dynamic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PIMCO RAFI Dynamic 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 PIMCO RAFI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PIMCO RAFI Dynamic has no effect on the direction of Comcast Corp i.e., Comcast Corp and PIMCO RAFI go up and down completely randomly.
Pair Corralation between Comcast Corp and PIMCO RAFI
Assuming the 90 days horizon Comcast Corp is expected to under-perform the PIMCO RAFI. In addition to that, Comcast Corp is 1.5 times more volatile than PIMCO RAFI Dynamic. It trades about -0.21 of its total potential returns per unit of risk. PIMCO RAFI Dynamic is currently generating about -0.06 per unit of volatility. If you would invest 1,939 in PIMCO RAFI Dynamic on January 25, 2024 and sell it today you would lose (20.30) from holding PIMCO RAFI Dynamic or give up 1.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Comcast Corp vs. PIMCO RAFI Dynamic
Performance |
| Timeline |
| Comcast Corp |
| PIMCO RAFI Dynamic |
Comcast Corp and PIMCO RAFI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Comcast Corp and PIMCO RAFI
The main advantage of trading using opposite Comcast Corp and PIMCO RAFI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Comcast Corp position performs unexpectedly, PIMCO RAFI 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 PIMCO RAFI will offset losses from the drop in PIMCO RAFI's long position.| Comcast Corp vs. Cable One | Comcast Corp vs. T Mobile | Comcast Corp vs. Altice USA | Comcast Corp vs. Verizon Communications |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |