Correlation Between KeyCorp and Bank Mandiri
Can any of the company-specific risk be diversified away by investing in both KeyCorp and Bank Mandiri 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 Bank Mandiri into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KeyCorp and Bank Mandiri Persero, you can compare the effects of market volatilities on KeyCorp and Bank Mandiri 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 Bank Mandiri. Check out your portfolio center. Please also check ongoing floating volatility patterns of KeyCorp and Bank Mandiri.
Diversification Opportunities for KeyCorp and Bank Mandiri
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between KeyCorp and Bank is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding KeyCorp and Bank Mandiri Persero in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Mandiri Persero 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 Bank Mandiri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Mandiri Persero has no effect on the direction of KeyCorp i.e., KeyCorp and Bank Mandiri go up and down completely randomly.
Pair Corralation between KeyCorp and Bank Mandiri
Considering the 90-day investment horizon KeyCorp is expected to generate 0.44 times more return on investment than Bank Mandiri. However, KeyCorp is 2.25 times less risky than Bank Mandiri. It trades about 0.1 of its potential returns per unit of risk. Bank Mandiri Persero is currently generating about -0.09 per unit of risk. If you would invest 1,738 in KeyCorp on November 5, 2024 and sell it today you would earn a total of 60.00 from holding KeyCorp or generate 3.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KeyCorp vs. Bank Mandiri Persero
Performance |
| Timeline |
| KeyCorp |
| Bank Mandiri Persero |
KeyCorp and Bank Mandiri Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KeyCorp and Bank Mandiri
The main advantage of trading using opposite KeyCorp and Bank Mandiri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KeyCorp position performs unexpectedly, Bank Mandiri 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 Bank Mandiri will offset losses from the drop in Bank Mandiri's long position.| KeyCorp vs. Western Alliance Bancorporation | KeyCorp vs. Comerica | KeyCorp vs. Truist Financial Corp | KeyCorp vs. Fifth Third Bancorp |
| Bank Mandiri vs. Banco De Chile | Bank Mandiri vs. Banco Santander Brasil | Bank Mandiri vs. CrossFirst Bankshares | Bank Mandiri vs. Banco Bradesco SA |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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