Correlation Between KeyCorp and Eurobank Ergasias
Can any of the company-specific risk be diversified away by investing in both KeyCorp and Eurobank Ergasias 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 Eurobank Ergasias into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KeyCorp and Eurobank Ergasias Services, you can compare the effects of market volatilities on KeyCorp and Eurobank Ergasias 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 Eurobank Ergasias. Check out your portfolio center. Please also check ongoing floating volatility patterns of KeyCorp and Eurobank Ergasias.
Diversification Opportunities for KeyCorp and Eurobank Ergasias
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between KeyCorp and Eurobank is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding KeyCorp and Eurobank Ergasias Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eurobank Ergasias 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 Eurobank Ergasias. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eurobank Ergasias has no effect on the direction of KeyCorp i.e., KeyCorp and Eurobank Ergasias go up and down completely randomly.
Pair Corralation between KeyCorp and Eurobank Ergasias
Considering the 90-day investment horizon KeyCorp is expected to under-perform the Eurobank Ergasias. But the stock apears to be less risky and, when comparing its historical volatility, KeyCorp is 1.08 times less risky than Eurobank Ergasias. The stock trades about -0.09 of its potential returns per unit of risk. The Eurobank Ergasias Services is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 209.00 in Eurobank Ergasias Services on October 23, 2024 and sell it today you would earn a total of 30.00 from holding Eurobank Ergasias Services or generate 14.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
KeyCorp vs. Eurobank Ergasias Services
Performance |
| Timeline |
| KeyCorp |
| Eurobank Ergasias |
KeyCorp and Eurobank Ergasias Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KeyCorp and Eurobank Ergasias
The main advantage of trading using opposite KeyCorp and Eurobank Ergasias positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KeyCorp position performs unexpectedly, Eurobank Ergasias 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 Eurobank Ergasias will offset losses from the drop in Eurobank Ergasias' long position.| KeyCorp vs. Western Alliance Bancorporation | KeyCorp vs. Comerica | KeyCorp vs. Truist Financial Corp | KeyCorp vs. Fifth Third Bancorp |
| Eurobank Ergasias vs. National Beverage Corp | Eurobank Ergasias vs. Vita Coco | Eurobank Ergasias vs. Meli Hotels International | Eurobank Ergasias vs. Oasis Hotel Resort |
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
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |