Correlation Between Piraeus Bank and Comerica
Can any of the company-specific risk be diversified away by investing in both Piraeus Bank and Comerica 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 Piraeus Bank and Comerica into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Piraeus Bank SA and Comerica, you can compare the effects of market volatilities on Piraeus Bank and Comerica 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 Piraeus Bank with a short position of Comerica. Check out your portfolio center. Please also check ongoing floating volatility patterns of Piraeus Bank and Comerica.
Diversification Opportunities for Piraeus Bank and Comerica
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Piraeus and Comerica is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Piraeus Bank SA and Comerica in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Comerica and Piraeus Bank 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 Piraeus Bank SA are associated (or correlated) with Comerica. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Comerica has no effect on the direction of Piraeus Bank i.e., Piraeus Bank and Comerica go up and down completely randomly.
Pair Corralation between Piraeus Bank and Comerica
Assuming the 90 days horizon Piraeus Bank SA is expected to generate 1.29 times more return on investment than Comerica. However, Piraeus Bank is 1.29 times more volatile than Comerica. It trades about 0.25 of its potential returns per unit of risk. Comerica is currently generating about -0.09 per unit of risk. If you would invest 368.00 in Piraeus Bank SA on October 23, 2024 and sell it today you would earn a total of 82.00 from holding Piraeus Bank SA or generate 22.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Piraeus Bank SA vs. Comerica
Performance |
| Timeline |
| Piraeus Bank SA |
| Comerica |
Piraeus Bank and Comerica Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Piraeus Bank and Comerica
The main advantage of trading using opposite Piraeus Bank and Comerica positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Piraeus Bank position performs unexpectedly, Comerica 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 Comerica will offset losses from the drop in Comerica's long position.| Piraeus Bank vs. Bankinter SA ADR | Piraeus Bank vs. JAPAN POST BANK | Piraeus Bank vs. JAPAN POST BANK | Piraeus Bank vs. Eurobank Ergasias Services |
| Comerica vs. Western Alliance Bancorporation | Comerica vs. KeyCorp | Comerica vs. Truist Financial Corp | Comerica vs. Zions Bancorporation |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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