Correlation Between Comerica and Meta Platforms
Can any of the company-specific risk be diversified away by investing in both Comerica and Meta Platforms 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 Meta Platforms into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Comerica and Meta Platforms, you can compare the effects of market volatilities on Comerica and Meta Platforms 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 Meta Platforms. Check out your portfolio center. Please also check ongoing floating volatility patterns of Comerica and Meta Platforms.
Diversification Opportunities for Comerica and Meta Platforms
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Comerica and Meta is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Comerica and Meta Platforms in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meta Platforms 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 Meta Platforms. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Meta Platforms has no effect on the direction of Comerica i.e., Comerica and Meta Platforms go up and down completely randomly.
Pair Corralation between Comerica and Meta Platforms
If you would invest 5,200 in Comerica on January 26, 2024 and sell it today you would earn a total of 95.00 from holding Comerica or generate 1.83% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 4.76% |
Values | Daily Returns |
Comerica vs. Meta Platforms
Performance |
Timeline |
Comerica |
Meta Platforms |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Comerica and Meta Platforms Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Comerica and Meta Platforms
The main advantage of trading using opposite Comerica and Meta Platforms positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Comerica position performs unexpectedly, Meta Platforms 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 Meta Platforms will offset losses from the drop in Meta Platforms' long position.Comerica vs. Western Alliance Bancorporation | Comerica vs. KeyCorp | Comerica vs. Truist Financial Corp | Comerica vs. Zions Bancorporation |
Meta Platforms vs. Meta Platforms | Meta Platforms vs. Alphabet Inc Class A | Meta Platforms vs. Twilio Inc | Meta Platforms vs. Snap Inc |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
CEOs Directory Screen CEOs from public companies around the world | |
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |