Correlation Between Bank of America and KEYBANK
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By analyzing existing cross correlation between Bank of America and KEYBANK NATL ASSN, you can compare the effects of market volatilities on Bank of America and KEYBANK 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 Bank of America with a short position of KEYBANK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and KEYBANK.
Diversification Opportunities for Bank of America and KEYBANK
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bank and KEYBANK is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and KEYBANK NATL ASSN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KEYBANK NATL ASSN and Bank of America 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 Bank of America are associated (or correlated) with KEYBANK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KEYBANK NATL ASSN has no effect on the direction of Bank of America i.e., Bank of America and KEYBANK go up and down completely randomly.
Pair Corralation between Bank of America and KEYBANK
Considering the 90-day investment horizon Bank of America is expected to generate 2.37 times more return on investment than KEYBANK. However, Bank of America is 2.37 times more volatile than KEYBANK NATL ASSN. It trades about 0.06 of its potential returns per unit of risk. KEYBANK NATL ASSN is currently generating about 0.01 per unit of risk. If you would invest 3,138 in Bank of America on August 27, 2024 and sell it today you would earn a total of 1,562 from holding Bank of America or generate 49.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 60.08% |
| Values | Daily Returns |
Bank of America vs. KEYBANK NATL ASSN
Performance |
| Timeline |
| Bank of America |
| KEYBANK NATL ASSN |
Bank of America and KEYBANK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and KEYBANK
The main advantage of trading using opposite Bank of America and KEYBANK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, KEYBANK 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 KEYBANK will offset losses from the drop in KEYBANK's long position.| Bank of America vs. Toronto Dominion Bank | Bank of America vs. Nu Holdings | Bank of America vs. HSBC Holdings PLC | Bank of America vs. Bank of Montreal |
| KEYBANK vs. The Coca Cola | KEYBANK vs. Diageo PLC ADR | KEYBANK vs. Cabo Drilling Corp | KEYBANK vs. Integrated Drilling Equipment |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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