Correlation Between Grupo Financiero and KeyCorp
Can any of the company-specific risk be diversified away by investing in both Grupo Financiero 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 Grupo Financiero and KeyCorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grupo Financiero Galicia and KeyCorp, you can compare the effects of market volatilities on Grupo Financiero 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 Grupo Financiero with a short position of KeyCorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Financiero and KeyCorp.
Diversification Opportunities for Grupo Financiero and KeyCorp
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Grupo and KeyCorp is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Financiero Galicia and KeyCorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KeyCorp and Grupo Financiero 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 Grupo Financiero Galicia 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 Grupo Financiero i.e., Grupo Financiero and KeyCorp go up and down completely randomly.
Pair Corralation between Grupo Financiero and KeyCorp
Given the investment horizon of 90 days Grupo Financiero Galicia is expected to under-perform the KeyCorp. In addition to that, Grupo Financiero is 4.72 times more volatile than KeyCorp. It trades about -0.33 of its total potential returns per unit of risk. KeyCorp is currently generating about 0.0 per unit of volatility. If you would invest 2,513 in KeyCorp on November 30, 2024 and sell it today you would lose (1.00) from holding KeyCorp or give up 0.04% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Grupo Financiero Galicia vs. KeyCorp
Performance |
Timeline |
Grupo Financiero Galicia |
KeyCorp |
Grupo Financiero and KeyCorp Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Grupo Financiero and KeyCorp
The main advantage of trading using opposite Grupo Financiero and KeyCorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Financiero 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.Grupo Financiero vs. Grupo Supervielle SA | ||
Grupo Financiero vs. BBVA Banco Frances | ||
Grupo Financiero vs. Itau Unibanco Banco | ||
Grupo Financiero vs. Banco Bradesco SA |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
Equity Valuation Check real value of public entities based on technical and fundamental data | |
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
Fundamental Analysis View fundamental data based on most recent published financial statements |