Correlation Between Comerica and Zions Bancorporation

Can any of the company-specific risk be diversified away by investing in both Comerica and Zions Bancorporation 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 Zions Bancorporation into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Comerica and Zions Bancorporation, you can compare the effects of market volatilities on Comerica and Zions Bancorporation 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 Zions Bancorporation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Comerica and Zions Bancorporation.

Diversification Opportunities for Comerica and Zions Bancorporation

0.9

Correlation Coefficient

Comerica  Zions Bancorporation

Almost no diversification

The 3 months correlation between Comerica and Zions is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Comerica and Zions Bancorp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zions Bancorporation 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 Zions Bancorporation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zions Bancorporation has no effect on the direction of Comerica i.e., Comerica and Zions Bancorporation go up and down completely randomly.

Pair Corralation between Comerica and Zions Bancorporation

Considering the 90-day investment horizon Comerica is expected to generate 0.98 times more return on investment than Zions Bancorporation. However, Comerica is 1.02 times less risky than Zions Bancorporation. It trades about 0.21 of its potential returns per unit of risk. Zions Bancorporation is currently generating about 0.15 per unit of risk. If you would invest  5,412  in Comerica on May 6, 2025 and sell it today you would earn a total of  1,327  from holding Comerica or generate 24.52% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Comerica  vs.  Zions Bancorp.

Comerica

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Comerica are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unfluctuating primary indicators, Comerica sustained solid returns over the last few months and may actually be approaching a breakup point.

Zions Bancorporation

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Zions Bancorporation are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of very conflicting basic indicators, Zions Bancorporation displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Comerica and Zions Bancorporation

The main advantage of trading using opposite Comerica and Zions Bancorporation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Comerica position performs unexpectedly, Zions Bancorporation 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 Zions Bancorporation will offset losses from the drop in Zions Bancorporation's long position.

The idea behind Comerica and Zions Bancorporation 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.