Correlation Between FC Investment and Comerica
Can any of the company-specific risk be diversified away by investing in both FC Investment and Comerica 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 FC Investment and Comerica into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FC Investment Trust and Comerica, you can compare the effects of market volatilities on FC Investment 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 FC Investment with a short position of Comerica. Check out your portfolio center. Please also check ongoing floating volatility patterns of FC Investment and Comerica.
Diversification Opportunities for FC Investment and Comerica
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between FCIT and Comerica is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding FC Investment Trust and Comerica in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Comerica and FC Investment 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 FC Investment Trust 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 has no effect on the direction of FC Investment i.e., FC Investment and Comerica go up and down completely randomly.
Pair Corralation between FC Investment and Comerica
Assuming the 90 days trading horizon FC Investment is expected to generate 1.58 times less return on investment than Comerica. But when comparing it to its historical volatility, FC Investment Trust is 2.89 times less risky than Comerica. It trades about 0.43 of its potential returns per unit of risk. Comerica is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 6,153 in Comerica on October 24, 2024 and sell it today you would earn a total of 528.00 from holding Comerica or generate 8.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 84.21% |
| Values | Daily Returns |
FC Investment Trust vs. Comerica
Performance |
| Timeline |
| FC Investment Trust |
| Comerica |
FC Investment and Comerica Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FC Investment and Comerica
The main advantage of trading using opposite FC Investment and Comerica positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FC Investment 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.| FC Investment vs. Hollywood Bowl Group | FC Investment vs. Alaska Air Group | FC Investment vs. JD Sports Fashion | FC Investment vs. Delta Air Lines |
| Comerica vs. Silver Bullet Data | Comerica vs. G5 Entertainment AB | Comerica vs. Zinc Media Group | Comerica vs. Everyman Media 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |