Correlation Between KeyCorp and SMUCKER
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By analyzing existing cross correlation between KeyCorp and SMUCKER J M, you can compare the effects of market volatilities on KeyCorp and SMUCKER 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 SMUCKER. Check out your portfolio center. Please also check ongoing floating volatility patterns of KeyCorp and SMUCKER.
Diversification Opportunities for KeyCorp and SMUCKER
Very weak diversification
The 3 months correlation between KeyCorp and SMUCKER is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding KeyCorp and SMUCKER J M in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SMUCKER J M 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 SMUCKER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SMUCKER J M has no effect on the direction of KeyCorp i.e., KeyCorp and SMUCKER go up and down completely randomly.
Pair Corralation between KeyCorp and SMUCKER
Assuming the 90 days trading horizon KeyCorp is expected to generate 0.93 times more return on investment than SMUCKER. However, KeyCorp is 1.08 times less risky than SMUCKER. It trades about 0.09 of its potential returns per unit of risk. SMUCKER J M is currently generating about 0.08 per unit of risk. If you would invest 2,300 in KeyCorp on September 3, 2024 and sell it today you would earn a total of 266.00 from holding KeyCorp or generate 11.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 49.32% |
| Values | Daily Returns |
KeyCorp vs. SMUCKER J M
Performance |
| Timeline |
| KeyCorp |
| SMUCKER J M |
KeyCorp and SMUCKER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KeyCorp and SMUCKER
The main advantage of trading using opposite KeyCorp and SMUCKER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KeyCorp position performs unexpectedly, SMUCKER 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 SMUCKER will offset losses from the drop in SMUCKER's long position.The idea behind KeyCorp and SMUCKER J M 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.| SMUCKER vs. KeyCorp | SMUCKER vs. Philip Morris International | SMUCKER vs. Juniata Valley Financial | SMUCKER vs. Chiba Bank Ltd |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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