Correlation Between Charter Communications and Comcast Corp

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

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

Diversification Opportunities for Charter Communications and Comcast Corp

0.77

Correlation Coefficient

Charter Communications  Comcast Corp

Poor diversification

The 3 months correlation between Charter and Comcast is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Charter Communications and Comcast Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Comcast Corp and Charter Communications 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 Charter Communications 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 Charter Communications i.e., Charter Communications and Comcast Corp go up and down completely randomly.

Pair Corralation between Charter Communications and Comcast Corp

Given the investment horizon of 90 days Charter Communications is expected to under-perform the Comcast Corp. In addition to that, Charter Communications is 1.45 times more volatile than Comcast Corp. It trades about -0.21 of its total potential returns per unit of risk. Comcast Corp is currently generating about -0.21 per unit of volatility. If you would invest  3,308  in Comcast Corp on August 17, 2025 and sell it today you would lose (557.00) from holding Comcast Corp or give up 16.84% of portfolio value over 90 days.

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

Charter Communications  vs.  Comcast Corp

Charter Communications

Risk-Adjusted Performance

Weakest

Over the last 90 days Charter Communications has generated negative risk-adjusted returns adding no value to investors with long positions. Even with unsteady performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in December 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Comcast Corp

Risk-Adjusted Performance

Weakest

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

Pair Trading with Charter Communications and Comcast Corp

The main advantage of trading using opposite Charter Communications and Comcast Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Charter Communications 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 Charter Communications 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.

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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.