Correlation Between First Republic and KeyCorp
Can any of the company-specific risk be diversified away by investing in both First Republic 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 First Republic and KeyCorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Republic Bank and KeyCorp, you can compare the effects of market volatilities on First Republic 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 First Republic with a short position of KeyCorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Republic and KeyCorp.
Diversification Opportunities for First Republic and KeyCorp
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between First and KeyCorp is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding First Republic Bank and KeyCorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KeyCorp and First Republic 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 First Republic Bank 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 First Republic i.e., First Republic and KeyCorp go up and down completely randomly.
Pair Corralation between First Republic and KeyCorp
If you would invest 2,337 in KeyCorp on August 30, 2024 and sell it today you would earn a total of 35.00 from holding KeyCorp or generate 1.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
First Republic Bank vs. KeyCorp
Performance |
| Timeline |
| First Republic Bank |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| KeyCorp |
First Republic and KeyCorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Republic and KeyCorp
The main advantage of trading using opposite First Republic and KeyCorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Republic 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.| First Republic vs. Asure Software | First Republic vs. Radcom | First Republic vs. Getty Images Holdings | First Republic vs. Rumble Inc |
| KeyCorp vs. KeyCorp | KeyCorp vs. Regions Financial | KeyCorp vs. US Bancorp | 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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