Correlation Between KeyCorp and Mauch Chunk
Can any of the company-specific risk be diversified away by investing in both KeyCorp and Mauch Chunk 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 Mauch Chunk into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KeyCorp and Mauch Chunk Trust, you can compare the effects of market volatilities on KeyCorp and Mauch Chunk 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 Mauch Chunk. Check out your portfolio center. Please also check ongoing floating volatility patterns of KeyCorp and Mauch Chunk.
Diversification Opportunities for KeyCorp and Mauch Chunk
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between KeyCorp and Mauch is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding KeyCorp and Mauch Chunk Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mauch Chunk Trust 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 Mauch Chunk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mauch Chunk Trust has no effect on the direction of KeyCorp i.e., KeyCorp and Mauch Chunk go up and down completely randomly.
Pair Corralation between KeyCorp and Mauch Chunk
Considering the 90-day investment horizon KeyCorp is expected to under-perform the Mauch Chunk. But the stock apears to be less risky and, when comparing its historical volatility, KeyCorp is 1.37 times less risky than Mauch Chunk. The stock trades about -0.06 of its potential returns per unit of risk. The Mauch Chunk Trust is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 648.00 in Mauch Chunk Trust on November 9, 2024 and sell it today you would lose (23.00) from holding Mauch Chunk Trust or give up 3.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 79.66% |
| Values | Daily Returns |
KeyCorp vs. Mauch Chunk Trust
Performance |
| Timeline |
| KeyCorp |
| Mauch Chunk Trust |
KeyCorp and Mauch Chunk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KeyCorp and Mauch Chunk
The main advantage of trading using opposite KeyCorp and Mauch Chunk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KeyCorp position performs unexpectedly, Mauch Chunk 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 Mauch Chunk will offset losses from the drop in Mauch Chunk's long position.| KeyCorp vs. Western Alliance Bancorporation | KeyCorp vs. Comerica | KeyCorp vs. Truist Financial Corp | KeyCorp vs. Fifth Third Bancorp |
| Mauch Chunk vs. Western Alliance Bancorporation | Mauch Chunk vs. Zions Bancorporation | Mauch Chunk vs. KeyCorp | Mauch Chunk vs. First Horizon National |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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