Correlation Between Comerica and Socit Gnrale
Can any of the company-specific risk be diversified away by investing in both Comerica and Socit Gnrale 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 Socit Gnrale into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Comerica and Socit Gnrale Socit, you can compare the effects of market volatilities on Comerica and Socit Gnrale 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 Socit Gnrale. Check out your portfolio center. Please also check ongoing floating volatility patterns of Comerica and Socit Gnrale.
Diversification Opportunities for Comerica and Socit Gnrale
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Comerica and Socit is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Comerica and Socit Gnrale Socit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Socit Gnrale Socit 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 Socit Gnrale. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Socit Gnrale Socit has no effect on the direction of Comerica i.e., Comerica and Socit Gnrale go up and down completely randomly.
Pair Corralation between Comerica and Socit Gnrale
Considering the 90-day investment horizon Comerica is expected to generate 0.6 times more return on investment than Socit Gnrale. However, Comerica is 1.68 times less risky than Socit Gnrale. It trades about -0.2 of its potential returns per unit of risk. Socit Gnrale Socit is currently generating about -0.21 per unit of risk. If you would invest 7,078 in Comerica on September 12, 2024 and sell it today you would lose (407.00) from holding Comerica or give up 5.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Comerica vs. Socit Gnrale Socit
Performance |
| Timeline |
| Comerica |
| Socit Gnrale Socit |
Comerica and Socit Gnrale Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Comerica and Socit Gnrale
The main advantage of trading using opposite Comerica and Socit Gnrale positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Comerica position performs unexpectedly, Socit Gnrale 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 Socit Gnrale will offset losses from the drop in Socit Gnrale's long position.| Comerica vs. JPMorgan Chase Co | Comerica vs. Citigroup | Comerica vs. Wells Fargo | Comerica vs. Toronto Dominion Bank |
| Socit Gnrale vs. Banco Bradesco SA | Socit Gnrale vs. Itau Unibanco Banco | Socit Gnrale vs. Lloyds Banking Group | Socit Gnrale vs. Deutsche Bank AG |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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