Correlation Between Comerica and CIB Marine
Can any of the company-specific risk be diversified away by investing in both Comerica and CIB Marine 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 CIB Marine into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Comerica and CIB Marine Bancshares, you can compare the effects of market volatilities on Comerica and CIB Marine 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 CIB Marine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Comerica and CIB Marine.
Diversification Opportunities for Comerica and CIB Marine
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Comerica and CIB is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Comerica and CIB Marine Bancshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CIB Marine Bancshares 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 CIB Marine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CIB Marine Bancshares has no effect on the direction of Comerica i.e., Comerica and CIB Marine go up and down completely randomly.
Pair Corralation between Comerica and CIB Marine
Considering the 90-day investment horizon Comerica is expected to generate 1.63 times more return on investment than CIB Marine. However, Comerica is 1.63 times more volatile than CIB Marine Bancshares. It trades about 0.03 of its potential returns per unit of risk. CIB Marine Bancshares is currently generating about 0.0 per unit of risk. If you would invest 5,912 in Comerica on September 3, 2024 and sell it today you would earn a total of 1,313 from holding Comerica or generate 22.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Comerica vs. CIB Marine Bancshares
Performance |
| Timeline |
| Comerica |
| CIB Marine Bancshares |
Comerica and CIB Marine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Comerica and CIB Marine
The main advantage of trading using opposite Comerica and CIB Marine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Comerica position performs unexpectedly, CIB Marine 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 CIB Marine will offset losses from the drop in CIB Marine's long position.| Comerica vs. Western Alliance Bancorporation | Comerica vs. KeyCorp | Comerica vs. Truist Financial Corp | Comerica vs. Zions Bancorporation |
| CIB Marine vs. First Hawaiian | CIB Marine vs. Central Pacific Financial | CIB Marine vs. Territorial Bancorp | CIB Marine vs. Comerica |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |