Correlation Between Comerica and Schweizerische Nationalbank
Can any of the company-specific risk be diversified away by investing in both Comerica and Schweizerische Nationalbank 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 Schweizerische Nationalbank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Comerica and Schweizerische Nationalbank, you can compare the effects of market volatilities on Comerica and Schweizerische Nationalbank 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 Schweizerische Nationalbank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Comerica and Schweizerische Nationalbank.
Diversification Opportunities for Comerica and Schweizerische Nationalbank
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Comerica and Schweizerische is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Comerica and Schweizerische Nationalbank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Schweizerische Nationalbank 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 Schweizerische Nationalbank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Schweizerische Nationalbank has no effect on the direction of Comerica i.e., Comerica and Schweizerische Nationalbank go up and down completely randomly.
Pair Corralation between Comerica and Schweizerische Nationalbank
Considering the 90-day investment horizon Comerica is expected to generate 1.14 times more return on investment than Schweizerische Nationalbank. However, Comerica is 1.14 times more volatile than Schweizerische Nationalbank. It trades about 0.09 of its potential returns per unit of risk. Schweizerische Nationalbank is currently generating about -0.05 per unit of risk. If you would invest 4,731 in Comerica on September 3, 2024 and sell it today you would earn a total of 2,494 from holding Comerica or generate 52.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Comerica vs. Schweizerische Nationalbank
Performance |
| Timeline |
| Comerica |
| Schweizerische Nationalbank |
Comerica and Schweizerische Nationalbank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Comerica and Schweizerische Nationalbank
The main advantage of trading using opposite Comerica and Schweizerische Nationalbank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Comerica position performs unexpectedly, Schweizerische Nationalbank 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 Schweizerische Nationalbank will offset losses from the drop in Schweizerische Nationalbank's long position.| Comerica vs. Western Alliance Bancorporation | Comerica vs. KeyCorp | Comerica vs. Truist Financial Corp | Comerica vs. Zions Bancorporation |
| Schweizerische Nationalbank vs. First Hawaiian | Schweizerische Nationalbank vs. Central Pacific Financial | Schweizerische Nationalbank vs. Territorial Bancorp | Schweizerische Nationalbank 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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