Correlation Between KEYCORP and 90331HPL1
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By analyzing existing cross correlation between KEYCORP MTN and US BANK NATIONAL, you can compare the effects of market volatilities on KEYCORP and 90331HPL1 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 90331HPL1. Check out your portfolio center. Please also check ongoing floating volatility patterns of KEYCORP and 90331HPL1.
Diversification Opportunities for KEYCORP and 90331HPL1
Very weak diversification
The 3 months correlation between KEYCORP and 90331HPL1 is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding KEYCORP MTN and US BANK NATIONAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US BANK NATIONAL 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 MTN are associated (or correlated) with 90331HPL1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US BANK NATIONAL has no effect on the direction of KEYCORP i.e., KEYCORP and 90331HPL1 go up and down completely randomly.
Pair Corralation between KEYCORP and 90331HPL1
Assuming the 90 days trading horizon KEYCORP MTN is expected to generate 2.69 times more return on investment than 90331HPL1. However, KEYCORP is 2.69 times more volatile than US BANK NATIONAL. It trades about -0.02 of its potential returns per unit of risk. US BANK NATIONAL is currently generating about -0.06 per unit of risk. If you would invest 8,476 in KEYCORP MTN on September 24, 2024 and sell it today you would lose (476.00) from holding KEYCORP MTN or give up 5.62% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 57.14% |
Values | Daily Returns |
KEYCORP MTN vs. US BANK NATIONAL
Performance |
Timeline |
KEYCORP MTN |
US BANK NATIONAL |
KEYCORP and 90331HPL1 Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with KEYCORP and 90331HPL1
The main advantage of trading using opposite KEYCORP and 90331HPL1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KEYCORP position performs unexpectedly, 90331HPL1 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 90331HPL1 will offset losses from the drop in 90331HPL1's long position.The idea behind KEYCORP MTN and US BANK NATIONAL 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.90331HPL1 vs. AEP TEX INC | 90331HPL1 vs. GBX International Group | 90331HPL1 vs. Bank of America | 90331HPL1 vs. PSQ Holdings |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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