Correlation Between Microsoft and KEYBANK
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By analyzing existing cross correlation between Microsoft and KEYBANK NATL ASSN, you can compare the effects of market volatilities on Microsoft and KEYBANK 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 Microsoft with a short position of KEYBANK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microsoft and KEYBANK.
Diversification Opportunities for Microsoft and KEYBANK
Good diversification
The 3 months correlation between Microsoft and KEYBANK is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Microsoft and KEYBANK NATL ASSN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KEYBANK NATL ASSN and Microsoft 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 Microsoft are associated (or correlated) with KEYBANK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KEYBANK NATL ASSN has no effect on the direction of Microsoft i.e., Microsoft and KEYBANK go up and down completely randomly.
Pair Corralation between Microsoft and KEYBANK
Given the investment horizon of 90 days Microsoft is expected to generate 2.62 times more return on investment than KEYBANK. However, Microsoft is 2.62 times more volatile than KEYBANK NATL ASSN. It trades about -0.04 of its potential returns per unit of risk. KEYBANK NATL ASSN is currently generating about -0.3 per unit of risk. If you would invest 43,109 in Microsoft on August 30, 2024 and sell it today you would lose (810.00) from holding Microsoft or give up 1.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 39.13% |
| Values | Daily Returns |
Microsoft vs. KEYBANK NATL ASSN
Performance |
| Timeline |
| Microsoft |
| KEYBANK NATL ASSN |
Microsoft and KEYBANK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microsoft and KEYBANK
The main advantage of trading using opposite Microsoft and KEYBANK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microsoft position performs unexpectedly, KEYBANK 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 KEYBANK will offset losses from the drop in KEYBANK's long position.| Microsoft vs. Palo Alto Networks | Microsoft vs. Uipath Inc | Microsoft vs. Block Inc | Microsoft vs. Adobe Systems Incorporated |
| KEYBANK vs. AEP TEX INC | KEYBANK vs. US BANK NATIONAL | KEYBANK vs. Nasdaq Inc | KEYBANK vs. Vertiv Holdings Co |
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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