Correlation Between Dow Jones and COMERICA
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By analyzing existing cross correlation between Dow Jones Industrial and COMERICA INC 4, you can compare the effects of market volatilities on Dow Jones and COMERICA 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 Dow Jones with a short position of COMERICA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and COMERICA.
Diversification Opportunities for Dow Jones and COMERICA
Very good diversification
The 3 months correlation between Dow and COMERICA is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and COMERICA INC 4 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COMERICA INC 4 and Dow Jones 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 Dow Jones Industrial are associated (or correlated) with COMERICA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COMERICA INC 4 has no effect on the direction of Dow Jones i.e., Dow Jones and COMERICA go up and down completely randomly.
Pair Corralation between Dow Jones and COMERICA
Assuming the 90 days trading horizon Dow Jones Industrial is expected to generate 1.0 times more return on investment than COMERICA. However, Dow Jones Industrial is 1.0 times less risky than COMERICA. It trades about 0.27 of its potential returns per unit of risk. COMERICA INC 4 is currently generating about 0.16 per unit of risk. If you would invest 4,223,305 in Dow Jones Industrial on August 30, 2024 and sell it today you would earn a total of 248,901 from holding Dow Jones Industrial or generate 5.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 86.96% |
| Values | Daily Returns |
Dow Jones Industrial vs. COMERICA INC 4
Performance |
| Timeline |
Dow Jones and COMERICA Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
COMERICA INC 4
Pair trading matchups for COMERICA
Pair Trading with Dow Jones and COMERICA
The main advantage of trading using opposite Dow Jones and COMERICA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, COMERICA 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 COMERICA will offset losses from the drop in COMERICA's long position.| Dow Jones vs. Skillful Craftsman Education | Dow Jones vs. Acco Brands | Dow Jones vs. Cracker Barrel Old | Dow Jones vs. Coursera |
| COMERICA vs. Lindblad Expeditions Holdings | COMERICA vs. Videolocity International | COMERICA vs. Mills Music Trust | COMERICA vs. Warner Music Group |
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 Stocks Directory module to find actively traded stocks across global markets.
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