Correlation Between KeyCorp and US Bancorp

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both KeyCorp and US 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 US Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KeyCorp and US Bancorp, you can compare the effects of market volatilities on KeyCorp and US 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 US Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of KeyCorp and US Bancorp.

Diversification Opportunities for KeyCorp and US Bancorp

0.95
  Correlation Coefficient

Almost no diversification

The 3 months correlation between KeyCorp and UB5 is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding KeyCorp and US Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US 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 US Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US Bancorp has no effect on the direction of KeyCorp i.e., KeyCorp and US Bancorp go up and down completely randomly.

Pair Corralation between KeyCorp and US Bancorp

Assuming the 90 days horizon KeyCorp is expected to generate 1.08 times more return on investment than US Bancorp. However, KeyCorp is 1.08 times more volatile than US Bancorp. It trades about 0.18 of its potential returns per unit of risk. US Bancorp is currently generating about 0.18 per unit of risk. If you would invest  1,481  in KeyCorp on August 28, 2024 and sell it today you would earn a total of  382.00  from holding KeyCorp or generate 25.79% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Strong
Accuracy100.0%
ValuesDaily Returns

KeyCorp  vs.  US Bancorp

 Performance 
       Timeline  
KeyCorp 

Risk-Adjusted Performance

14 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in KeyCorp are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, KeyCorp reported solid returns over the last few months and may actually be approaching a breakup point.
US Bancorp 

Risk-Adjusted Performance

13 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in US Bancorp are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, US Bancorp reported solid returns over the last few months and may actually be approaching a breakup point.

KeyCorp and US Bancorp Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with KeyCorp and US Bancorp

The main advantage of trading using opposite KeyCorp and US Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KeyCorp position performs unexpectedly, US 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 US Bancorp will offset losses from the drop in US Bancorp's long position.
KeyCorp vs. Superior Plus Corp
KeyCorp vs. NMI Holdings
KeyCorp vs. Origin Agritech
KeyCorp vs. SIVERS SEMICONDUCTORS AB
The idea behind KeyCorp and US 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.
US Bancorp vs. Superior Plus Corp
US Bancorp vs. NMI Holdings
US Bancorp vs. Origin Agritech
US Bancorp vs. SIVERS SEMICONDUCTORS AB
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.

Other Complementary Tools

FinTech Suite
Use AI to screen and filter profitable investment opportunities
Economic Indicators
Top statistical indicators that provide insights into how an economy is performing
Premium Stories
Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope
Theme Ratings
Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance
Stock Screener
Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook.


 
Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions
 
Feedback Blog
Made with optimal in San Francisco
2024 Macroaxis LLC
COMMON DESTINATIONS
MAIN CATEGORIES
COMPANY