Correlation Between Digi International and KEYCORP
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By analyzing existing cross correlation between Digi International and KEYCORP MTN, you can compare the effects of market volatilities on Digi 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 Digi International with a short position of KEYCORP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Digi International and KEYCORP.
Diversification Opportunities for Digi International and KEYCORP
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Digi and KEYCORP is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Digi International and KEYCORP MTN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KEYCORP MTN and Digi 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 Digi 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 MTN has no effect on the direction of Digi International i.e., Digi International and KEYCORP go up and down completely randomly.
Pair Corralation between Digi International and KEYCORP
Given the investment horizon of 90 days Digi International is expected to generate 1.91 times more return on investment than KEYCORP. However, Digi International is 1.91 times more volatile than KEYCORP MTN. It trades about 0.12 of its potential returns per unit of risk. KEYCORP MTN is currently generating about -0.2 per unit of risk. If you would invest 3,059 in Digi International on August 30, 2024 and sell it today you would earn a total of 208.00 from holding Digi International or generate 6.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Digi International vs. KEYCORP MTN
Performance |
| Timeline |
| Digi International |
| KEYCORP MTN |
Digi International and KEYCORP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Digi International and KEYCORP
The main advantage of trading using opposite Digi International and KEYCORP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Digi 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.| Digi International vs. Extreme Networks | Digi International vs. Ciena Corp | Digi International vs. Harmonic | Digi International vs. Comtech Telecommunications Corp |
| KEYCORP vs. Pool Corporation | KEYCORP vs. Vindicator Silver Lead Mining | KEYCORP vs. Titan Machinery | KEYCORP vs. Getty Realty |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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