Correlation Between PT Bank and KeyCorp
Can any of the company-specific risk be diversified away by investing in both PT Bank 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 PT Bank and KeyCorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Bank Rakyat and KeyCorp, you can compare the effects of market volatilities on PT Bank 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 PT Bank with a short position of KeyCorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bank and KeyCorp.
Diversification Opportunities for PT Bank and KeyCorp
Weak diversification
The 3 months correlation between BKRKF and KeyCorp is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding PT Bank Rakyat and KeyCorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KeyCorp and PT Bank 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 PT Bank Rakyat 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 PT Bank i.e., PT Bank and KeyCorp go up and down completely randomly.
Pair Corralation between PT Bank and KeyCorp
Assuming the 90 days horizon PT Bank is expected to generate 5.46 times less return on investment than KeyCorp. In addition to that, PT Bank is 3.19 times more volatile than KeyCorp. It trades about 0.0 of its total potential returns per unit of risk. KeyCorp is currently generating about 0.07 per unit of volatility. If you would invest 1,320 in KeyCorp on November 3, 2024 and sell it today you would earn a total of 478.00 from holding KeyCorp or generate 36.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 93.55% |
| Values | Daily Returns |
PT Bank Rakyat vs. KeyCorp
Performance |
| Timeline |
| PT Bank Rakyat |
| KeyCorp |
PT Bank and KeyCorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Bank and KeyCorp
The main advantage of trading using opposite PT Bank and KeyCorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bank 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.| PT Bank vs. Bank Mandiri Persero | PT Bank vs. Piraeus Bank SA | PT Bank vs. Eurobank Ergasias Services | PT Bank vs. Kasikornbank Public Co |
| KeyCorp vs. Western Alliance Bancorporation | KeyCorp vs. Comerica | KeyCorp vs. Truist Financial Corp | KeyCorp vs. Fifth Third Bancorp |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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