Correlation Between Via Varejo and KeyCorp
Can any of the company-specific risk be diversified away by investing in both Via Varejo 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 Via Varejo and KeyCorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Via Varejo SA and KeyCorp, you can compare the effects of market volatilities on Via Varejo 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 Via Varejo with a short position of KeyCorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Via Varejo and KeyCorp.
Diversification Opportunities for Via Varejo and KeyCorp
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Via and KeyCorp is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Via Varejo SA and KeyCorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KeyCorp and Via Varejo 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 Via Varejo SA 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 Via Varejo i.e., Via Varejo and KeyCorp go up and down completely randomly.
Pair Corralation between Via Varejo and KeyCorp
If you would invest 2,142 in KeyCorp on September 4, 2024 and sell it today you would earn a total of 347.00 from holding KeyCorp or generate 16.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.2% |
| Values | Daily Returns |
Via Varejo SA vs. KeyCorp
Performance |
| Timeline |
| Via Varejo SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| KeyCorp |
Via Varejo and KeyCorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Via Varejo and KeyCorp
The main advantage of trading using opposite Via Varejo and KeyCorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Via Varejo 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.| Via Varejo vs. NetSol Technologies | Via Varejo vs. Stepan Company | Via Varejo vs. Kaltura | Via Varejo vs. Chemours Co |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |