Correlation Between Comerica and Eurobank Ergasias
Can any of the company-specific risk be diversified away by investing in both Comerica and Eurobank Ergasias 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 Eurobank Ergasias into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Comerica and Eurobank Ergasias Services, you can compare the effects of market volatilities on Comerica and Eurobank Ergasias 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 Eurobank Ergasias. Check out your portfolio center. Please also check ongoing floating volatility patterns of Comerica and Eurobank Ergasias.
Diversification Opportunities for Comerica and Eurobank Ergasias
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Comerica and Eurobank is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Comerica and Eurobank Ergasias Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eurobank Ergasias 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 Eurobank Ergasias. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eurobank Ergasias has no effect on the direction of Comerica i.e., Comerica and Eurobank Ergasias go up and down completely randomly.
Pair Corralation between Comerica and Eurobank Ergasias
Considering the 90-day investment horizon Comerica is expected to generate 2.27 times less return on investment than Eurobank Ergasias. But when comparing it to its historical volatility, Comerica is 1.7 times less risky than Eurobank Ergasias. It trades about 0.08 of its potential returns per unit of risk. Eurobank Ergasias Services is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 152.00 in Eurobank Ergasias Services on November 3, 2024 and sell it today you would earn a total of 115.00 from holding Eurobank Ergasias Services or generate 75.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 75.4% |
| Values | Daily Returns |
Comerica vs. Eurobank Ergasias Services
Performance |
| Timeline |
| Comerica |
| Eurobank Ergasias |
Comerica and Eurobank Ergasias Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Comerica and Eurobank Ergasias
The main advantage of trading using opposite Comerica and Eurobank Ergasias positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Comerica position performs unexpectedly, Eurobank Ergasias 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 Eurobank Ergasias will offset losses from the drop in Eurobank Ergasias' long position.| Comerica vs. Western Alliance Bancorporation | Comerica vs. KeyCorp | Comerica vs. Truist Financial Corp | Comerica vs. Zions Bancorporation |
| Eurobank Ergasias vs. Dave Busters Entertainment | Eurobank Ergasias vs. Park Electrochemical | Eurobank Ergasias vs. Purecycle Technologies Holdings | Eurobank Ergasias vs. Sealed Air |
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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