Correlation Between Comerica and MBank SA
Can any of the company-specific risk be diversified away by investing in both Comerica and MBank SA 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 MBank SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Comerica and mBank SA, you can compare the effects of market volatilities on Comerica and MBank SA 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 MBank SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Comerica and MBank SA.
Diversification Opportunities for Comerica and MBank SA
Pay attention - limited upside
The 3 months correlation between Comerica and MBank is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Comerica and mBank SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on mBank SA 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 MBank SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of mBank SA has no effect on the direction of Comerica i.e., Comerica and MBank SA go up and down completely randomly.
Pair Corralation between Comerica and MBank SA
If you would invest 3,988 in mBank SA on September 14, 2024 and sell it today you would earn a total of 0.00 from holding mBank SA or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Comerica vs. mBank SA
Performance |
| Timeline |
| Comerica |
| mBank SA |
Comerica and MBank SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Comerica and MBank SA
The main advantage of trading using opposite Comerica and MBank SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Comerica position performs unexpectedly, MBank SA 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 MBank SA will offset losses from the drop in MBank SA's long position.| Comerica vs. Western Alliance Bancorporation | Comerica vs. KeyCorp | Comerica vs. Truist Financial Corp | Comerica vs. Zions Bancorporation |
| MBank SA vs. Zions Bancorporation | MBank SA vs. Huntington Bancshares Incorporated | MBank SA vs. Comerica | MBank SA vs. Western Alliance Bancorporation |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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