Correlation Between Aquagold International and KeyCorp
Can any of the company-specific risk be diversified away by investing in both Aquagold International 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 Aquagold International and KeyCorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aquagold International and KeyCorp, you can compare the effects of market volatilities on Aquagold International 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 Aquagold International with a short position of KeyCorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aquagold International and KeyCorp.
Diversification Opportunities for Aquagold International and KeyCorp
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Aquagold and KeyCorp is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Aquagold International and KeyCorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KeyCorp and Aquagold International 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 Aquagold International 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 Aquagold International i.e., Aquagold International and KeyCorp go up and down completely randomly.
Pair Corralation between Aquagold International and KeyCorp
Given the investment horizon of 90 days Aquagold International is expected to under-perform the KeyCorp. In addition to that, Aquagold International is 7.53 times more volatile than KeyCorp. It trades about -0.11 of its total potential returns per unit of risk. KeyCorp is currently generating about -0.03 per unit of volatility. If you would invest 2,147 in KeyCorp on January 14, 2025 and sell it today you would lose (137.00) from holding KeyCorp or give up 6.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.2% |
| Values | Daily Returns |
Aquagold International vs. KeyCorp
Performance |
| Timeline |
| Aquagold International |
| KeyCorp |
Aquagold International and KeyCorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aquagold International and KeyCorp
The main advantage of trading using opposite Aquagold International and KeyCorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aquagold International 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.| Aquagold International vs. PepsiCo | Aquagold International vs. Coca Cola Consolidated | Aquagold International vs. Monster Beverage Corp | Aquagold International vs. Celsius Holdings |
| KeyCorp vs. CNB Financial | KeyCorp vs. Pinnacle Financial Partners | KeyCorp vs. OceanFirst Financial Corp | KeyCorp vs. Aquagold International |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |