Correlation Between Comerica and OptimumBank Holdings,

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Comerica and OptimumBank Holdings, 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 OptimumBank Holdings, into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Comerica and OptimumBank Holdings,, you can compare the effects of market volatilities on Comerica and OptimumBank Holdings, 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 OptimumBank Holdings,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Comerica and OptimumBank Holdings,.

Diversification Opportunities for Comerica and OptimumBank Holdings,

0.74
  Correlation Coefficient

Poor diversification

The 3 months correlation between Comerica and OptimumBank is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Comerica and OptimumBank Holdings, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OptimumBank Holdings, 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 OptimumBank Holdings,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OptimumBank Holdings, has no effect on the direction of Comerica i.e., Comerica and OptimumBank Holdings, go up and down completely randomly.

Pair Corralation between Comerica and OptimumBank Holdings,

Considering the 90-day investment horizon Comerica is expected to generate 1.44 times more return on investment than OptimumBank Holdings,. However, Comerica is 1.44 times more volatile than OptimumBank Holdings,. It trades about 0.02 of its potential returns per unit of risk. OptimumBank Holdings, is currently generating about 0.02 per unit of risk. If you would invest  6,080  in Comerica on October 7, 2024 and sell it today you would earn a total of  168.00  from holding Comerica or generate 2.76% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Comerica  vs.  OptimumBank Holdings,

 Performance 
       Timeline  
Comerica 

Risk-Adjusted Performance

5 of 100

 
Weak
 
Strong
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in Comerica are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite somewhat conflicting primary indicators, Comerica may actually be approaching a critical reversion point that can send shares even higher in February 2025.
OptimumBank Holdings, 

Risk-Adjusted Performance

3 of 100

 
Weak
 
Strong
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in OptimumBank Holdings, are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound technical indicators, OptimumBank Holdings, is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Comerica and OptimumBank Holdings, Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Comerica and OptimumBank Holdings,

The main advantage of trading using opposite Comerica and OptimumBank Holdings, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Comerica position performs unexpectedly, OptimumBank Holdings, 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 OptimumBank Holdings, will offset losses from the drop in OptimumBank Holdings,'s long position.
The idea behind Comerica and OptimumBank Holdings, pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.

Other Complementary Tools

Alpha Finder
Use alpha and beta coefficients to find investment opportunities after accounting for the risk
Idea Optimizer
Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio
Fundamentals Comparison
Compare fundamentals across multiple equities to find investing opportunities
ETFs
Find actively traded Exchange Traded Funds (ETF) from around the world
Investing Opportunities
Build portfolios using our predefined set of ideas and optimize them against your investing preferences