Correlation Between Comerica and South Atlantic
Can any of the company-specific risk be diversified away by investing in both Comerica and South Atlantic 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 South Atlantic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Comerica and South Atlantic Bancshares, you can compare the effects of market volatilities on Comerica and South Atlantic 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 South Atlantic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Comerica and South Atlantic.
Diversification Opportunities for Comerica and South Atlantic
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Comerica and South is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Comerica and South Atlantic Bancshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on South Atlantic Bancshares 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 South Atlantic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of South Atlantic Bancshares has no effect on the direction of Comerica i.e., Comerica and South Atlantic go up and down completely randomly.
Pair Corralation between Comerica and South Atlantic
Considering the 90-day investment horizon Comerica is expected to generate 1.1 times less return on investment than South Atlantic. In addition to that, Comerica is 1.21 times more volatile than South Atlantic Bancshares. It trades about 0.11 of its total potential returns per unit of risk. South Atlantic Bancshares is currently generating about 0.15 per unit of volatility. If you would invest 1,065 in South Atlantic Bancshares on September 3, 2024 and sell it today you would earn a total of 475.00 from holding South Atlantic Bancshares or generate 44.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Comerica vs. South Atlantic Bancshares
Performance |
| Timeline |
| Comerica |
| South Atlantic Bancshares |
Comerica and South Atlantic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Comerica and South Atlantic
The main advantage of trading using opposite Comerica and South Atlantic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Comerica position performs unexpectedly, South Atlantic 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 South Atlantic will offset losses from the drop in South Atlantic's long position.| Comerica vs. Western Alliance Bancorporation | Comerica vs. KeyCorp | Comerica vs. Truist Financial Corp | Comerica vs. Zions Bancorporation |
| South Atlantic vs. First Hawaiian | South Atlantic vs. Central Pacific Financial | South Atlantic vs. Territorial Bancorp | South Atlantic vs. Comerica |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |