Correlation Between KeyCorp and First Bancshares,
Can any of the company-specific risk be diversified away by investing in both KeyCorp and First Bancshares, 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 First Bancshares, into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KeyCorp and The First Bancshares,, you can compare the effects of market volatilities on KeyCorp and First Bancshares, 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 First Bancshares,. Check out your portfolio center. Please also check ongoing floating volatility patterns of KeyCorp and First Bancshares,.
Diversification Opportunities for KeyCorp and First Bancshares,
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between KeyCorp and First is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding KeyCorp and The First Bancshares, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Bancshares, 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 First Bancshares,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Bancshares, has no effect on the direction of KeyCorp i.e., KeyCorp and First Bancshares, go up and down completely randomly.
Pair Corralation between KeyCorp and First Bancshares,
Considering the 90-day investment horizon KeyCorp is expected to generate 1.01 times less return on investment than First Bancshares,. In addition to that, KeyCorp is 1.12 times more volatile than The First Bancshares,. It trades about 0.17 of its total potential returns per unit of risk. The First Bancshares, is currently generating about 0.19 per unit of volatility. If you would invest 3,299 in The First Bancshares, on August 25, 2024 and sell it today you would earn a total of 466.00 from holding The First Bancshares, or generate 14.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
KeyCorp vs. The First Bancshares,
Performance |
| Timeline |
| KeyCorp |
| First Bancshares, |
KeyCorp and First Bancshares, Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KeyCorp and First Bancshares,
The main advantage of trading using opposite KeyCorp and First Bancshares, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KeyCorp position performs unexpectedly, First Bancshares, 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 First Bancshares, will offset losses from the drop in First Bancshares,'s long position.| KeyCorp vs. Fifth Third Bancorp | KeyCorp vs. Zions Bancorporation | KeyCorp vs. Huntington Bancshares Incorporated | KeyCorp vs. PNC Financial Services |
| First Bancshares, vs. Fifth Third Bancorp | First Bancshares, vs. Zions Bancorporation | First Bancshares, vs. Huntington Bancshares Incorporated | First Bancshares, vs. PNC Financial Services |
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 Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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