Correlation Between Comerica and Intercorp Financial
Can any of the company-specific risk be diversified away by investing in both Comerica and Intercorp 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 Intercorp Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Comerica and Intercorp Financial Services, you can compare the effects of market volatilities on Comerica and Intercorp 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 Intercorp Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Comerica and Intercorp Financial.
Diversification Opportunities for Comerica and Intercorp Financial
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Comerica and Intercorp is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Comerica and Intercorp Financial Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intercorp Financial 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 Intercorp Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intercorp Financial has no effect on the direction of Comerica i.e., Comerica and Intercorp Financial go up and down completely randomly.
Pair Corralation between Comerica and Intercorp Financial
Considering the 90-day investment horizon Comerica is expected to generate 1.68 times more return on investment than Intercorp Financial. However, Comerica is 1.68 times more volatile than Intercorp Financial Services. It trades about 0.21 of its potential returns per unit of risk. Intercorp Financial Services is currently generating about 0.14 per unit of risk. If you would invest 5,514 in Comerica on September 2, 2024 and sell it today you would earn a total of 1,711 from holding Comerica or generate 31.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Comerica vs. Intercorp Financial Services
Performance |
| Timeline |
| Comerica |
| Intercorp Financial |
Comerica and Intercorp Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Comerica and Intercorp Financial
The main advantage of trading using opposite Comerica and Intercorp Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Comerica position performs unexpectedly, Intercorp 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 Intercorp Financial will offset losses from the drop in Intercorp Financial's long position.| Comerica vs. Western Alliance Bancorporation | Comerica vs. KeyCorp | Comerica vs. Truist Financial Corp | Comerica vs. Zions Bancorporation |
| Intercorp Financial vs. Banco De Chile | Intercorp Financial vs. Bancolombia SA ADR | Intercorp Financial vs. Foreign Trade Bank | Intercorp Financial vs. BancFirst |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |