Correlation Between KORN FERRY and KeyCorp
Can any of the company-specific risk be diversified away by investing in both KORN FERRY and KeyCorp 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 KORN FERRY and KeyCorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KORN FERRY INTL and KeyCorp, you can compare the effects of market volatilities on KORN FERRY and KeyCorp 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 KORN FERRY with a short position of KeyCorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of KORN FERRY and KeyCorp.
Diversification Opportunities for KORN FERRY and KeyCorp
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between KORN and KeyCorp is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding KORN FERRY INTL and KeyCorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KeyCorp and KORN FERRY 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 KORN FERRY INTL are associated (or correlated) with KeyCorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KeyCorp has no effect on the direction of KORN FERRY i.e., KORN FERRY and KeyCorp go up and down completely randomly.
Pair Corralation between KORN FERRY and KeyCorp
Assuming the 90 days trading horizon KORN FERRY is expected to generate 1.07 times less return on investment than KeyCorp. But when comparing it to its historical volatility, KORN FERRY INTL is 1.22 times less risky than KeyCorp. It trades about 0.3 of its potential returns per unit of risk. KeyCorp is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 1,628 in KeyCorp on October 24, 2024 and sell it today you would earn a total of 123.00 from holding KeyCorp or generate 7.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
KORN FERRY INTL vs. KeyCorp
Performance |
| Timeline |
| KORN FERRY INTL |
| KeyCorp |
KORN FERRY and KeyCorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KORN FERRY and KeyCorp
The main advantage of trading using opposite KORN FERRY and KeyCorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KORN FERRY position performs unexpectedly, KeyCorp 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 KeyCorp will offset losses from the drop in KeyCorp's long position.The idea behind KORN FERRY INTL and KeyCorp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| KeyCorp vs. TELECOM ITALRISP ADR10 | KeyCorp vs. ONWARD MEDICAL BV | KeyCorp vs. ScanSource | KeyCorp vs. Apollo Medical Holdings |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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