Correlation Between KeyCorp and Bank of Hawaii
Can any of the company-specific risk be diversified away by investing in both KeyCorp and Bank of Hawaii 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 KeyCorp and Bank of Hawaii into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KeyCorp and Bank of Hawaii, you can compare the effects of market volatilities on KeyCorp and Bank of Hawaii 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 Bank of Hawaii. Check out your portfolio center. Please also check ongoing floating volatility patterns of KeyCorp and Bank of Hawaii.
Diversification Opportunities for KeyCorp and Bank of Hawaii
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between KeyCorp and Bank is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding KeyCorp and Bank of Hawaii in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of Hawaii 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 Bank of Hawaii. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of Hawaii has no effect on the direction of KeyCorp i.e., KeyCorp and Bank of Hawaii go up and down completely randomly.
Pair Corralation between KeyCorp and Bank of Hawaii
Assuming the 90 days trading horizon KeyCorp is expected to generate 0.78 times more return on investment than Bank of Hawaii. However, KeyCorp is 1.28 times less risky than Bank of Hawaii. It trades about 0.15 of its potential returns per unit of risk. Bank of Hawaii is currently generating about 0.07 per unit of risk. If you would invest 2,052 in KeyCorp on September 3, 2024 and sell it today you would earn a total of 352.00 from holding KeyCorp or generate 17.15% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
KeyCorp vs. Bank of Hawaii
Performance |
Timeline |
KeyCorp |
Bank of Hawaii |
KeyCorp and Bank of Hawaii Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with KeyCorp and Bank of Hawaii
The main advantage of trading using opposite KeyCorp and Bank of Hawaii positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KeyCorp position performs unexpectedly, Bank of Hawaii 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 Bank of Hawaii will offset losses from the drop in Bank of Hawaii's long position.KeyCorp vs. Capital One Financial | KeyCorp vs. Bank of America | KeyCorp vs. HUMANA INC | KeyCorp vs. Aquagold International |
Bank of Hawaii vs. Morgan Stanley | Bank of Hawaii vs. KeyCorp | Bank of Hawaii vs. KeyCorp | Bank of Hawaii vs. KeyCorp |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
Share Portfolio Track or share privately all of your investments from the convenience of any device | |
Commodity Directory Find actively traded commodities issued by global exchanges | |
Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
Economic Indicators Top statistical indicators that provide insights into how an economy is performing |