Correlation Between KeyCorp and National Bank
Can any of the company-specific risk be diversified away by investing in both KeyCorp and National Bank 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 National Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KeyCorp and National Bank of, you can compare the effects of market volatilities on KeyCorp and National Bank 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 National Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of KeyCorp and National Bank.
Diversification Opportunities for KeyCorp and National Bank
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between KeyCorp and National is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding KeyCorp and National Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Bank 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 National Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Bank has no effect on the direction of KeyCorp i.e., KeyCorp and National Bank go up and down completely randomly.
Pair Corralation between KeyCorp and National Bank
Considering the 90-day investment horizon KeyCorp is expected to generate 0.74 times more return on investment than National Bank. However, KeyCorp is 1.34 times less risky than National Bank. It trades about 0.09 of its potential returns per unit of risk. National Bank of is currently generating about 0.03 per unit of risk. If you would invest 1,102 in KeyCorp on August 26, 2024 and sell it today you would earn a total of 858.00 from holding KeyCorp or generate 77.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KeyCorp vs. National Bank of
Performance |
| Timeline |
| KeyCorp |
| National Bank |
KeyCorp and National Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KeyCorp and National Bank
The main advantage of trading using opposite KeyCorp and National Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KeyCorp position performs unexpectedly, National Bank 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 National Bank will offset losses from the drop in National Bank's long position.| KeyCorp vs. Fifth Third Bancorp | KeyCorp vs. Zions Bancorporation | KeyCorp vs. Huntington Bancshares Incorporated | KeyCorp vs. PNC Financial Services |
| National Bank vs. Standard Bank Group | National Bank vs. PSB Holdings | National Bank vs. United Overseas Bank | National Bank vs. Turkiye Garanti Bankasi |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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