Correlation Between IF Bancorp and Commerzbank
Can any of the company-specific risk be diversified away by investing in both IF Bancorp and Commerzbank 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 IF Bancorp and Commerzbank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IF Bancorp and Commerzbank AG, you can compare the effects of market volatilities on IF Bancorp and Commerzbank 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 IF Bancorp with a short position of Commerzbank. Check out your portfolio center. Please also check ongoing floating volatility patterns of IF Bancorp and Commerzbank.
Diversification Opportunities for IF Bancorp and Commerzbank
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between IROQ and Commerzbank is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding IF Bancorp and Commerzbank AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Commerzbank AG and IF Bancorp 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 IF Bancorp are associated (or correlated) with Commerzbank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Commerzbank AG has no effect on the direction of IF Bancorp i.e., IF Bancorp and Commerzbank go up and down completely randomly.
Pair Corralation between IF Bancorp and Commerzbank
Given the investment horizon of 90 days IF Bancorp is expected to generate 5.7 times less return on investment than Commerzbank. But when comparing it to its historical volatility, IF Bancorp is 2.83 times less risky than Commerzbank. It trades about 0.05 of its potential returns per unit of risk. Commerzbank AG is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 3,362 in Commerzbank AG on July 14, 2025 and sell it today you would earn a total of 449.00 from holding Commerzbank AG or generate 13.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 80.0% |
| Values | Daily Returns |
IF Bancorp vs. Commerzbank AG
Performance |
| Timeline |
| IF Bancorp |
| Commerzbank AG |
IF Bancorp and Commerzbank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IF Bancorp and Commerzbank
The main advantage of trading using opposite IF Bancorp and Commerzbank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IF Bancorp position performs unexpectedly, Commerzbank 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 Commerzbank will offset losses from the drop in Commerzbank's long position.| IF Bancorp vs. Commerzbank AG | IF Bancorp vs. Oconee Federal Financial | IF Bancorp vs. Investar Holding Corp | IF Bancorp vs. Colony Bankcorp |
| Commerzbank vs. IF Bancorp | Commerzbank vs. Home Bancorp | Commerzbank vs. Commerzbank AG PK | Commerzbank vs. Oconee Federal Financial |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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