Correlation Between Commerzbank and Calfrac Well

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

By analyzing existing cross correlation between Commerzbank AG PK and Calfrac Well Services, you can compare the effects of market volatilities on Commerzbank and Calfrac Well 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 Commerzbank with a short position of Calfrac Well. Check out your portfolio center. Please also check ongoing floating volatility patterns of Commerzbank and Calfrac Well.

Diversification Opportunities for Commerzbank and Calfrac Well

0.7

Correlation Coefficient

Commerzbank  Calfrac Well

Poor diversification

The 3 months correlation between Commerzbank and Calfrac is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Commerzbank AG PK and Calfrac Well Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calfrac Well Services and Commerzbank 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 Commerzbank AG PK are associated (or correlated) with Calfrac Well. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calfrac Well Services has no effect on the direction of Commerzbank i.e., Commerzbank and Calfrac Well go up and down completely randomly.

Pair Corralation between Commerzbank and Calfrac Well

Assuming the 90 days horizon Commerzbank AG PK is expected to generate 0.86 times more return on investment than Calfrac Well. However, Commerzbank AG PK is 1.17 times less risky than Calfrac Well. It trades about 0.26 of its potential returns per unit of risk. Calfrac Well Services is currently generating about 0.07 per unit of risk. If you would invest  2,709  in Commerzbank AG PK on May 7, 2025 and sell it today you would earn a total of  1,154  from holding Commerzbank AG PK or generate 42.6% return on investment over 90 days.

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

Commerzbank AG PK  vs.  Calfrac Well Services

Commerzbank AG PK

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Commerzbank AG PK are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile fundamental drivers, Commerzbank showed solid returns over the last few months and may actually be approaching a breakup point.

Calfrac Well Services

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Calfrac Well Services are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile technical and fundamental indicators, Calfrac Well may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Commerzbank and Calfrac Well

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

The idea behind Commerzbank AG PK and Calfrac Well Services 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.