Search for another Company Symbol?

Volatility Analysis for Comerica Incorporated

Chapter II: Risks associated with short and long period price changes can be understood through Volatility Analysis. Here the impact of the Volatility Curve on the potential profitability positions across different time spans is shown.

Prev. Co. Next Co.
Daily Volatility = Price Range as a percent of the daily average price. of Comerica Incorporated

Volatility is defined as the price range for a period, divided by the average price for the period:

For instance, on 1/28/2011 the average price was 38.35 with a range of 0.88, indicating a Daily Volatility of 2.2%. Daily Volatility (the daily range as a portion of the daily average price) is plotted in green. Blue is Weekly Volatility, which is the weekly range as a portion of the weekly average price. It is important to avoid confusing this with the weekly average of the daily volatility, which is a completely different concept.

For reference, the price is plotted in red. The remaining marks on the plot correspond to the Volatility measured across several time intervals.

Investors often make a distinction between the concept of Volatility, and the concept of Risk. Academics define them to be exactly equivalent, but as can be seen here, there is good reason to distinguish between the levels of volatility or risk experienced across different time frames. During 21 years, the Average Quarterly Volatility of CMA stock price has been 23% while the Average Daily Volatility has been 3%.



Prev. Co. Next Co.
CMA:  Volatility Curve

If you have ever seen a "yield curve" you should be able to understand the concept behind this "yield curve". Each Volatility Curve is a snapshot in time. From left to right, each position plots the Volatility associated with increasing intervals of time. However, as seen in this plot of the CMA Volatility Curve, the increase is not constant.



Prev. Co. Next Co.
Daily Volatility Histogram of Comerica Incorporated

A frequency distribution of the green points on the first chart (the daily volatility) yields this histogram.



Prev. Co. Next Co.
Quarterly Volatility Histogram of Comerica Incorporated

In a similar vein, the Frequency Distribution of the Quarterly Volatility is plotted here. This is the distribution of the values plotted in purple on the top chart from this page.

For Subscribers: Refined Analysis of Comerica Incorporated Volatility and Risk Behavior

Refined Volatility Risk Analysis for CMA :


Companies in the News:

Friday, February 18, 2011: We have news on Fiserv, Inc., ticker symbol FISV. Signs of an over-bought condition have become noticable. Also, there are breaking events concerning Zimmer Holdings, Inc. and McCormick & Company, Incorporated.

From the News Archive: (2/18/2011 ) Bad news came from Reynolds American, Inc., Dollar Tree, Inc., Zimmer Holdings, Inc., and NVIDIA Corp.


More CMA Technical Analysis Topics

CMA Price Predictions

Support and Resistance Levels

Volume Stratification Analysis

Politics and Prices of CMA

Japanese Candlestick Analysis

CMA Classical Analysis of Time Series

CMA Historical Volume

CMA Seasonal Trends

Back to CMA Table of Contents


Information on public pages is delayed. Associates of Hybrid Technical may hold positions in issues covered here. These reports are not to be used for stock-picking or investment decision support. Any such use is strictly prohibited.



Notice: Pages available to the public on this site are for entertainment and academic purposes only. We do not advocate investment in common stock. We do not recommend the purchase or sale of this or any other issue. Research shows that most people who invest in common stock will lose money. Charts and concepts are property of Hybrid Technical. All Rights Reserved. All Content is Copyright 2010 by Hybrid Technical

.