Correlation Between Cleanaway Waste and Comerica Incorporated

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Can any of the company-specific risk be diversified away by investing in both Cleanaway Waste and Comerica Incorporated 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 Cleanaway Waste and Comerica Incorporated into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cleanaway Waste Management and Comerica Incorporated, you can compare the effects of market volatilities on Cleanaway Waste and Comerica Incorporated 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 Cleanaway Waste with a short position of Comerica Incorporated. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cleanaway Waste and Comerica Incorporated.

Diversification Opportunities for Cleanaway Waste and Comerica Incorporated

-0.29
  Correlation Coefficient

Very good diversification

The 3 months correlation between Cleanaway and Comerica is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Cleanaway Waste Management and Comerica Incorporated in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Comerica Incorporated and Cleanaway Waste 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 Cleanaway Waste Management are associated (or correlated) with Comerica Incorporated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Comerica Incorporated has no effect on the direction of Cleanaway Waste i.e., Cleanaway Waste and Comerica Incorporated go up and down completely randomly.

Pair Corralation between Cleanaway Waste and Comerica Incorporated

Assuming the 90 days horizon Cleanaway Waste is expected to generate 8.85 times less return on investment than Comerica Incorporated. In addition to that, Cleanaway Waste is 1.86 times more volatile than Comerica Incorporated. It trades about 0.01 of its total potential returns per unit of risk. Comerica Incorporated is currently generating about 0.15 per unit of volatility. If you would invest  6,876  in Comerica Incorporated on September 11, 2025 and sell it today you would earn a total of  1,499  from holding Comerica Incorporated or generate 21.8% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Cleanaway Waste Management  vs.  Comerica Incorporated

 Performance 
       Timeline  
Cleanaway Waste Mana 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Cleanaway Waste Management has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable fundamental indicators, Cleanaway Waste is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.
Comerica Incorporated 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Comerica Incorporated are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain primary indicators, Comerica Incorporated sustained solid returns over the last few months and may actually be approaching a breakup point.

Cleanaway Waste and Comerica Incorporated Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Cleanaway Waste and Comerica Incorporated

The main advantage of trading using opposite Cleanaway Waste and Comerica Incorporated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cleanaway Waste position performs unexpectedly, Comerica Incorporated 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 Incorporated will offset losses from the drop in Comerica Incorporated's long position.
The idea behind Cleanaway Waste Management and Comerica Incorporated pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.

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