Correlation Between Comerica and Japan Post
Can any of the company-specific risk be diversified away by investing in both Comerica and Japan Post 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 Japan Post into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Comerica and Japan Post Holdings, you can compare the effects of market volatilities on Comerica and Japan Post 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 Japan Post. Check out your portfolio center. Please also check ongoing floating volatility patterns of Comerica and Japan Post.
Diversification Opportunities for Comerica and Japan Post
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Comerica and Japan is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Comerica and Japan Post Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Japan Post Holdings 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 Japan Post. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Japan Post Holdings has no effect on the direction of Comerica i.e., Comerica and Japan Post go up and down completely randomly.
Pair Corralation between Comerica and Japan Post
Considering the 90-day investment horizon Comerica is expected to generate 0.84 times more return on investment than Japan Post. However, Comerica is 1.19 times less risky than Japan Post. It trades about 0.18 of its potential returns per unit of risk. Japan Post Holdings is currently generating about 0.01 per unit of risk. If you would invest 5,475 in Comerica on September 9, 2024 and sell it today you would earn a total of 1,463 from holding Comerica or generate 26.72% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Comerica vs. Japan Post Holdings
Performance |
Timeline |
Comerica |
Japan Post Holdings |
Comerica and Japan Post Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Comerica and Japan Post
The main advantage of trading using opposite Comerica and Japan Post positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Comerica position performs unexpectedly, Japan Post 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 Japan Post will offset losses from the drop in Japan Post's long position.Comerica vs. Western Alliance Bancorporation | Comerica vs. KeyCorp | Comerica vs. Truist Financial Corp | Comerica vs. Zions Bancorporation |
Japan Post vs. Nmb Financial Corp | Japan Post vs. Bank Utica Ny | Japan Post vs. Auburn Bancorp | Japan Post vs. Permanent TSB 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |