Correlation Between Comerica and Chemung Financial
Can any of the company-specific risk be diversified away by investing in both Comerica and Chemung Financial 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 Comerica and Chemung Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Comerica and Chemung Financial Corp, you can compare the effects of market volatilities on Comerica and Chemung Financial 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 Comerica with a short position of Chemung Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Comerica and Chemung Financial.
Diversification Opportunities for Comerica and Chemung Financial
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Comerica and Chemung is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Comerica and Chemung Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chemung Financial Corp and Comerica 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 Comerica are associated (or correlated) with Chemung Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chemung Financial Corp has no effect on the direction of Comerica i.e., Comerica and Chemung Financial go up and down completely randomly.
Pair Corralation between Comerica and Chemung Financial
Considering the 90-day investment horizon Comerica is expected to generate 1.66 times more return on investment than Chemung Financial. However, Comerica is 1.66 times more volatile than Chemung Financial Corp. It trades about 0.08 of its potential returns per unit of risk. Chemung Financial Corp is currently generating about 0.07 per unit of risk. If you would invest 3,982 in Comerica on August 31, 2024 and sell it today you would earn a total of 3,243 from holding Comerica or generate 81.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Comerica vs. Chemung Financial Corp
Performance |
| Timeline |
| Comerica |
| Chemung Financial Corp |
Comerica and Chemung Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Comerica and Chemung Financial
The main advantage of trading using opposite Comerica and Chemung Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Comerica position performs unexpectedly, Chemung Financial 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 Chemung Financial will offset losses from the drop in Chemung Financial's long position.| Comerica vs. Western Alliance Bancorporation | Comerica vs. KeyCorp | Comerica vs. Truist Financial Corp | Comerica vs. Zions Bancorporation |
| Chemung Financial vs. KeyCorp | Chemung Financial vs. Comerica | Chemung Financial vs. First Horizon National | Chemung Financial vs. Western Alliance 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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |