Correlation Between KeyCorp and ALTRIA
Specify exactly 2 symbols:
By analyzing existing cross correlation between KeyCorp and ALTRIA GROUP INC, you can compare the effects of market volatilities on KeyCorp and ALTRIA 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 KeyCorp with a short position of ALTRIA. Check out your portfolio center. Please also check ongoing floating volatility patterns of KeyCorp and ALTRIA.
Diversification Opportunities for KeyCorp and ALTRIA
Good diversification
The 3 months correlation between KeyCorp and ALTRIA is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding KeyCorp and ALTRIA GROUP INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALTRIA GROUP INC and KeyCorp 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 KeyCorp are associated (or correlated) with ALTRIA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALTRIA GROUP INC has no effect on the direction of KeyCorp i.e., KeyCorp and ALTRIA go up and down completely randomly.
Pair Corralation between KeyCorp and ALTRIA
Assuming the 90 days trading horizon KeyCorp is expected to generate 0.24 times more return on investment than ALTRIA. However, KeyCorp is 4.24 times less risky than ALTRIA. It trades about 0.09 of its potential returns per unit of risk. ALTRIA GROUP INC is currently generating about -0.14 per unit of risk. If you would invest 2,532 in KeyCorp on September 2, 2024 and sell it today you would earn a total of 34.00 from holding KeyCorp or generate 1.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.48% |
| Values | Daily Returns |
KeyCorp vs. ALTRIA GROUP INC
Performance |
| Timeline |
| KeyCorp |
| ALTRIA GROUP INC |
KeyCorp and ALTRIA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KeyCorp and ALTRIA
The main advantage of trading using opposite KeyCorp and ALTRIA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KeyCorp position performs unexpectedly, ALTRIA 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 ALTRIA will offset losses from the drop in ALTRIA's long position.The idea behind KeyCorp and ALTRIA GROUP INC pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |