Correlation Between KeyCorp and Jeffersonville Bancorp
Can any of the company-specific risk be diversified away by investing in both KeyCorp and Jeffersonville Bancorp 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 Jeffersonville Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KeyCorp and Jeffersonville Bancorp, you can compare the effects of market volatilities on KeyCorp and Jeffersonville Bancorp 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 Jeffersonville Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of KeyCorp and Jeffersonville Bancorp.
Diversification Opportunities for KeyCorp and Jeffersonville Bancorp
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between KeyCorp and Jeffersonville is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding KeyCorp and Jeffersonville Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jeffersonville Bancorp 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 Jeffersonville Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jeffersonville Bancorp has no effect on the direction of KeyCorp i.e., KeyCorp and Jeffersonville Bancorp go up and down completely randomly.
Pair Corralation between KeyCorp and Jeffersonville Bancorp
If you would invest (100.00) in Jeffersonville Bancorp on November 28, 2024 and sell it today you would earn a total of 100.00 from holding Jeffersonville Bancorp or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
KeyCorp vs. Jeffersonville Bancorp
Performance |
| Timeline |
| KeyCorp |
| Jeffersonville Bancorp |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
KeyCorp and Jeffersonville Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KeyCorp and Jeffersonville Bancorp
The main advantage of trading using opposite KeyCorp and Jeffersonville Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KeyCorp position performs unexpectedly, Jeffersonville Bancorp 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 Jeffersonville Bancorp will offset losses from the drop in Jeffersonville Bancorp's long position.The idea behind KeyCorp and Jeffersonville Bancorp 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.| Jeffersonville Bancorp vs. Heritage NOLA Bancorp | Jeffersonville Bancorp vs. Rhinebeck Bancorp | Jeffersonville Bancorp vs. Bridgewater Bancshares Depositary | Jeffersonville Bancorp vs. Bank of Marin |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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