Correlation Between Superior Plus and KeyCorp
Can any of the company-specific risk be diversified away by investing in both Superior Plus and KeyCorp 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 Superior Plus and KeyCorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Superior Plus Corp and KeyCorp, you can compare the effects of market volatilities on Superior Plus and KeyCorp 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 Superior Plus with a short position of KeyCorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Superior Plus and KeyCorp.
Diversification Opportunities for Superior Plus and KeyCorp
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Superior and KeyCorp is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding Superior Plus Corp and KeyCorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KeyCorp and Superior Plus 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 Superior Plus Corp are associated (or correlated) with KeyCorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KeyCorp has no effect on the direction of Superior Plus i.e., Superior Plus and KeyCorp go up and down completely randomly.
Pair Corralation between Superior Plus and KeyCorp
Assuming the 90 days horizon Superior Plus is expected to generate 5.41 times less return on investment than KeyCorp. In addition to that, Superior Plus is 1.75 times more volatile than KeyCorp. It trades about 0.02 of its total potential returns per unit of risk. KeyCorp is currently generating about 0.23 per unit of volatility. If you would invest 1,595 in KeyCorp on September 1, 2024 and sell it today you would earn a total of 240.00 from holding KeyCorp or generate 15.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Superior Plus Corp vs. KeyCorp
Performance |
| Timeline |
| Superior Plus Corp |
| KeyCorp |
Superior Plus and KeyCorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Superior Plus and KeyCorp
The main advantage of trading using opposite Superior Plus and KeyCorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Superior Plus position performs unexpectedly, KeyCorp 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 KeyCorp will offset losses from the drop in KeyCorp's long position.| Superior Plus vs. TSOGO SUN GAMING | Superior Plus vs. FUTURE GAMING GRP | Superior Plus vs. TROPHY GAMES DEV | Superior Plus vs. Boyd Gaming |
| KeyCorp vs. Playa Hotels Resorts | KeyCorp vs. Pebblebrook Hotel Trust | KeyCorp vs. INTERSHOP Communications Aktiengesellschaft | KeyCorp vs. INTERCONT HOTELS |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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