Correlation Between Comerica and Lewis Clark
Can any of the company-specific risk be diversified away by investing in both Comerica and Lewis Clark 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 Lewis Clark into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Comerica and Lewis Clark Bancorp, you can compare the effects of market volatilities on Comerica and Lewis Clark 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 Lewis Clark. Check out your portfolio center. Please also check ongoing floating volatility patterns of Comerica and Lewis Clark.
Diversification Opportunities for Comerica and Lewis Clark
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Comerica and Lewis is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Comerica and Lewis Clark Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lewis Clark Bancorp 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 Lewis Clark. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lewis Clark Bancorp has no effect on the direction of Comerica i.e., Comerica and Lewis Clark go up and down completely randomly.
Pair Corralation between Comerica and Lewis Clark
Considering the 90-day investment horizon Comerica is expected to generate 1.32 times more return on investment than Lewis Clark. However, Comerica is 1.32 times more volatile than Lewis Clark Bancorp. It trades about 0.05 of its potential returns per unit of risk. Lewis Clark Bancorp is currently generating about 0.05 per unit of risk. If you would invest 4,931 in Comerica on September 12, 2024 and sell it today you would earn a total of 1,835 from holding Comerica or generate 37.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 67.33% |
| Values | Daily Returns |
Comerica vs. Lewis Clark Bancorp
Performance |
| Timeline |
| Comerica |
| Lewis Clark Bancorp |
Comerica and Lewis Clark Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Comerica and Lewis Clark
The main advantage of trading using opposite Comerica and Lewis Clark positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Comerica position performs unexpectedly, Lewis Clark 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 Lewis Clark will offset losses from the drop in Lewis Clark's long position.| Comerica vs. JPMorgan Chase Co | Comerica vs. Citigroup | Comerica vs. Wells Fargo | Comerica vs. Toronto Dominion Bank |
| Lewis Clark vs. FitLife Brands, Common | Lewis Clark vs. Perseus Mining Limited | Lewis Clark vs. Mesa Air Group | Lewis Clark vs. Sligro Food Group |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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