Correlation Between Intercorp Financial and KeyCorp
Can any of the company-specific risk be diversified away by investing in both Intercorp Financial 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 Intercorp Financial and KeyCorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intercorp Financial Services and KeyCorp, you can compare the effects of market volatilities on Intercorp Financial 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 Intercorp Financial with a short position of KeyCorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intercorp Financial and KeyCorp.
Diversification Opportunities for Intercorp Financial and KeyCorp
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Intercorp and KeyCorp is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Intercorp Financial Services and KeyCorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KeyCorp and Intercorp Financial 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 Intercorp Financial Services 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 Intercorp Financial i.e., Intercorp Financial and KeyCorp go up and down completely randomly.
Pair Corralation between Intercorp Financial and KeyCorp
Considering the 90-day investment horizon Intercorp Financial Services is expected to generate 0.96 times more return on investment than KeyCorp. However, Intercorp Financial Services is 1.04 times less risky than KeyCorp. It trades about 0.3 of its potential returns per unit of risk. KeyCorp is currently generating about -0.17 per unit of risk. If you would invest 2,923 in Intercorp Financial Services on November 29, 2024 and sell it today you would earn a total of 284.00 from holding Intercorp Financial Services or generate 9.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intercorp Financial Services vs. KeyCorp
Performance |
| Timeline |
| Intercorp Financial |
| KeyCorp |
Intercorp Financial and KeyCorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intercorp Financial and KeyCorp
The main advantage of trading using opposite Intercorp Financial and KeyCorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intercorp Financial 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.| Intercorp Financial vs. Banco De Chile | Intercorp Financial vs. Bancolombia SA ADR | Intercorp Financial vs. Foreign Trade Bank | Intercorp Financial vs. BancFirst |
| 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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