Correlation Between Keysight Technologies, and Comcast

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

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

Diversification Opportunities for Keysight Technologies, and Comcast

0.0

Correlation Coefficient

Keysight Technologies,  Comcast

Pay attention - limited upside

The 3 months correlation between Keysight and Comcast is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Keysight Technologies, and Comcast in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Comcast and Keysight Technologies, 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 Keysight Technologies, 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 Keysight Technologies, i.e., Keysight Technologies, and Comcast go up and down completely randomly.

Pair Corralation between Keysight Technologies, and Comcast

Assuming the 90 days trading horizon Keysight Technologies, is expected to generate 0.1 times more return on investment than Comcast. However, Keysight Technologies, is 10.46 times less risky than Comcast. It trades about 0.12 of its potential returns per unit of risk. Comcast is currently generating about -0.01 per unit of risk. If you would invest  44,500  in Keysight Technologies, on April 22, 2025 and sell it today you would earn a total of  490.00  from holding Keysight Technologies, or generate 1.1% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Keysight Technologies,  vs.  Comcast

Keysight Technologies,

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Keysight Technologies, are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Keysight Technologies, is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

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 somewhat strong fundamental indicators, Comcast is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Keysight Technologies, and Comcast

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

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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.