Correlation Between KeyCorp and 189054AY5
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By analyzing existing cross correlation between KeyCorp and CLX 44 01 MAY 29, you can compare the effects of market volatilities on KeyCorp and 189054AY5 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 189054AY5. Check out your portfolio center. Please also check ongoing floating volatility patterns of KeyCorp and 189054AY5.
Diversification Opportunities for KeyCorp and 189054AY5
Weak diversification
The 3 months correlation between KeyCorp and 189054AY5 is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding KeyCorp and CLX 44 01 MAY 29 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CLX 44 01 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 189054AY5. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CLX 44 01 has no effect on the direction of KeyCorp i.e., KeyCorp and 189054AY5 go up and down completely randomly.
Pair Corralation between KeyCorp and 189054AY5
Assuming the 90 days trading horizon KeyCorp is expected to under-perform the 189054AY5. In addition to that, KeyCorp is 2.74 times more volatile than CLX 44 01 MAY 29. It trades about -0.05 of its total potential returns per unit of risk. CLX 44 01 MAY 29 is currently generating about -0.07 per unit of volatility. If you would invest 10,124 in CLX 44 01 MAY 29 on September 12, 2024 and sell it today you would lose (129.00) from holding CLX 44 01 MAY 29 or give up 1.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 96.83% |
| Values | Daily Returns |
KeyCorp vs. CLX 44 01 MAY 29
Performance |
| Timeline |
| KeyCorp |
| CLX 44 01 |
KeyCorp and 189054AY5 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KeyCorp and 189054AY5
The main advantage of trading using opposite KeyCorp and 189054AY5 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KeyCorp position performs unexpectedly, 189054AY5 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 189054AY5 will offset losses from the drop in 189054AY5's long position.The idea behind KeyCorp and CLX 44 01 MAY 29 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.| 189054AY5 vs. AEP TEX INC | 189054AY5 vs. US BANK NATIONAL | 189054AY5 vs. Alphabet Inc Class C | 189054AY5 vs. InMode |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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