Correlation Between KeyCorp and Chicago Atlantic

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

By analyzing existing cross correlation between KeyCorp and Chicago Atlantic BDC,, you can compare the effects of market volatilities on KeyCorp and Chicago Atlantic 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 KeyCorp with a short position of Chicago Atlantic. Check out your portfolio center. Please also check ongoing floating volatility patterns of KeyCorp and Chicago Atlantic.

Diversification Opportunities for KeyCorp and Chicago Atlantic

-0.04

Correlation Coefficient

KeyCorp  Chicago Atlantic

Good diversification

The 3 months correlation between KeyCorp and Chicago is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding KeyCorp and Chicago Atlantic BDC, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chicago Atlantic BDC, and KeyCorp 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 KeyCorp are associated (or correlated) with Chicago Atlantic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chicago Atlantic BDC, has no effect on the direction of KeyCorp i.e., KeyCorp and Chicago Atlantic go up and down completely randomly.

Pair Corralation between KeyCorp and Chicago Atlantic

Assuming the 90 days trading horizon KeyCorp is expected to generate 2.47 times less return on investment than Chicago Atlantic. In addition to that, KeyCorp is 1.05 times more volatile than Chicago Atlantic BDC,. It trades about 0.02 of its total potential returns per unit of risk. Chicago Atlantic BDC, is currently generating about 0.06 per unit of volatility. If you would invest  748.00  in Chicago Atlantic BDC, on September 24, 2024 and sell it today you would earn a total of  479.50  from holding Chicago Atlantic BDC, or generate 64.1% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	99.8%
Values	Daily Returns

KeyCorp  vs.  Chicago Atlantic BDC,

KeyCorp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days KeyCorp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, KeyCorp is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Chicago Atlantic BDC,

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Chicago Atlantic BDC, are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of very inconsistent technical and fundamental indicators, Chicago Atlantic displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with KeyCorp and Chicago Atlantic

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

The idea behind KeyCorp and Chicago Atlantic BDC, 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.

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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.