Correlation Between Comcast Corp and Chunghwa Telecom
Can any of the company-specific risk be diversified away by investing in both Comcast Corp and Chunghwa Telecom 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 Chunghwa Telecom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Comcast Corp and Chunghwa Telecom Co, you can compare the effects of market volatilities on Comcast Corp and Chunghwa Telecom 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 Chunghwa Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Comcast Corp and Chunghwa Telecom.
Diversification Opportunities for Comcast Corp and Chunghwa Telecom
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Comcast and Chunghwa is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Comcast Corp and Chunghwa Telecom Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chunghwa Telecom 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 Chunghwa Telecom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chunghwa Telecom has no effect on the direction of Comcast Corp i.e., Comcast Corp and Chunghwa Telecom go up and down completely randomly.
Pair Corralation between Comcast Corp and Chunghwa Telecom
Assuming the 90 days horizon Comcast Corp is expected to generate 2.7 times less return on investment than Chunghwa Telecom. In addition to that, Comcast Corp is 1.65 times more volatile than Chunghwa Telecom Co. It trades about 0.01 of its total potential returns per unit of risk. Chunghwa Telecom Co is currently generating about 0.06 per unit of volatility. If you would invest 4,215 in Chunghwa Telecom Co on June 5, 2025 and sell it today you would earn a total of 136.00 from holding Chunghwa Telecom Co or generate 3.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Comcast Corp vs. Chunghwa Telecom Co
Performance |
| Timeline |
| Comcast Corp |
| Chunghwa Telecom |
Comcast Corp and Chunghwa Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Comcast Corp and Chunghwa Telecom
The main advantage of trading using opposite Comcast Corp and Chunghwa Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Comcast Corp position performs unexpectedly, Chunghwa Telecom 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 Chunghwa Telecom will offset losses from the drop in Chunghwa Telecom's long position.| Comcast Corp vs. Charter Communications | Comcast Corp vs. T Mobile | Comcast Corp vs. Verizon Communications | Comcast Corp vs. ATT Inc |
| Chunghwa Telecom vs. America Movil SAB | Chunghwa Telecom vs. Telefonica Brasil SA | Chunghwa Telecom vs. KT Corporation | Chunghwa Telecom vs. SK Telecom Co |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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