Correlation Between Comerica and Deutsche Bank
Can any of the company-specific risk be diversified away by investing in both Comerica and Deutsche Bank 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 Deutsche Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Comerica and Deutsche Bank AG, you can compare the effects of market volatilities on Comerica and Deutsche Bank 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 Deutsche Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Comerica and Deutsche Bank.
Diversification Opportunities for Comerica and Deutsche Bank
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Comerica and Deutsche is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Comerica and Deutsche Bank AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Deutsche Bank AG 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 Deutsche Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Deutsche Bank AG has no effect on the direction of Comerica i.e., Comerica and Deutsche Bank go up and down completely randomly.
Pair Corralation between Comerica and Deutsche Bank
Considering the 90-day investment horizon Comerica is expected to generate 1.32 times more return on investment than Deutsche Bank. However, Comerica is 1.32 times more volatile than Deutsche Bank AG. It trades about 0.22 of its potential returns per unit of risk. Deutsche Bank AG is currently generating about 0.05 per unit of risk. If you would invest 6,239 in Comerica on September 5, 2024 and sell it today you would earn a total of 844.00 from holding Comerica or generate 13.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Comerica vs. Deutsche Bank AG
Performance |
| Timeline |
| Comerica |
| Deutsche Bank AG |
Comerica and Deutsche Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Comerica and Deutsche Bank
The main advantage of trading using opposite Comerica and Deutsche Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Comerica position performs unexpectedly, Deutsche Bank 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 Deutsche Bank will offset losses from the drop in Deutsche Bank's long position.| Comerica vs. Western Alliance Bancorporation | Comerica vs. KeyCorp | Comerica vs. Truist Financial Corp | Comerica vs. Zions Bancorporation |
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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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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