Correlation Between Oakley Capital and Comerica
Can any of the company-specific risk be diversified away by investing in both Oakley Capital 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 Oakley Capital and Comerica into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oakley Capital Investments and Comerica, you can compare the effects of market volatilities on Oakley Capital 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 Oakley Capital with a short position of Comerica. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oakley Capital and Comerica.
Diversification Opportunities for Oakley Capital and Comerica
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Oakley and Comerica is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Oakley Capital Investments and Comerica in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Comerica and Oakley Capital 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 Oakley Capital Investments 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 Oakley Capital i.e., Oakley Capital and Comerica go up and down completely randomly.
Pair Corralation between Oakley Capital and Comerica
Assuming the 90 days trading horizon Oakley Capital is expected to generate 1.3 times less return on investment than Comerica. But when comparing it to its historical volatility, Oakley Capital Investments is 2.61 times less risky than Comerica. It trades about 0.03 of its potential returns per unit of risk. Comerica is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 6,053 in Comerica on October 7, 2024 and sell it today you would earn a total of 129.00 from holding Comerica or generate 2.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 96.39% |
| Values | Daily Returns |
Oakley Capital Investments vs. Comerica
Performance |
| Timeline |
| Oakley Capital Inves |
| Comerica |
Oakley Capital and Comerica Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oakley Capital and Comerica
The main advantage of trading using opposite Oakley Capital and Comerica positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oakley Capital 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.| Oakley Capital vs. Verizon Communications | Oakley Capital vs. EVS Broadcast Equipment | Oakley Capital vs. Fortune Brands Home | Oakley Capital vs. bet at home AG |
| Comerica vs. Livermore Investments Group | Comerica vs. FC Investment Trust | Comerica vs. Jupiter Green Investment | Comerica vs. Thor Mining PLC |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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