Correlation Between KeyCorp and BankUnited
Can any of the company-specific risk be diversified away by investing in both KeyCorp and BankUnited 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 BankUnited into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KeyCorp and BankUnited, you can compare the effects of market volatilities on KeyCorp and BankUnited 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 BankUnited. Check out your portfolio center. Please also check ongoing floating volatility patterns of KeyCorp and BankUnited.
Diversification Opportunities for KeyCorp and BankUnited
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between KeyCorp and BankUnited is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding KeyCorp and BankUnited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BankUnited 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 BankUnited. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BankUnited has no effect on the direction of KeyCorp i.e., KeyCorp and BankUnited go up and down completely randomly.
Pair Corralation between KeyCorp and BankUnited
If you would invest 3,240 in BankUnited on August 30, 2024 and sell it today you would earn a total of 740.00 from holding BankUnited or generate 22.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
KeyCorp vs. BankUnited
Performance |
| Timeline |
| KeyCorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
| BankUnited |
KeyCorp and BankUnited Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KeyCorp and BankUnited
The main advantage of trading using opposite KeyCorp and BankUnited positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KeyCorp position performs unexpectedly, BankUnited 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 BankUnited will offset losses from the drop in BankUnited's long position.| KeyCorp vs. CENTURIA OFFICE REIT | KeyCorp vs. Chesapeake Utilities | KeyCorp vs. MSAD INSURANCE | KeyCorp vs. United Utilities Group |
| BankUnited vs. Fifth Third Bancorp | BankUnited vs. Huntington Bancshares Incorporated | BankUnited vs. Superior Plus Corp | BankUnited vs. NMI Holdings |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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