Correlation Between ON Semiconductor and KeyCorp
Can any of the company-specific risk be diversified away by investing in both ON Semiconductor 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 ON Semiconductor and KeyCorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ON Semiconductor and KeyCorp, you can compare the effects of market volatilities on ON Semiconductor 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 ON Semiconductor with a short position of KeyCorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of ON Semiconductor and KeyCorp.
Diversification Opportunities for ON Semiconductor and KeyCorp
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between O2NS34 and KeyCorp is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding ON Semiconductor and KeyCorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KeyCorp and ON Semiconductor 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 ON Semiconductor 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 ON Semiconductor i.e., ON Semiconductor and KeyCorp go up and down completely randomly.
Pair Corralation between ON Semiconductor and KeyCorp
Assuming the 90 days trading horizon ON Semiconductor is expected to generate 0.98 times more return on investment than KeyCorp. However, ON Semiconductor is 1.02 times less risky than KeyCorp. It trades about 0.29 of its potential returns per unit of risk. KeyCorp is currently generating about 0.15 per unit of risk. If you would invest 3,052 in ON Semiconductor on November 20, 2025 and sell it today you would earn a total of 1,560 from holding ON Semiconductor or generate 51.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 98.28% |
| Values | Daily Returns |
ON Semiconductor vs. KeyCorp
Performance |
| Timeline |
| ON Semiconductor |
| KeyCorp |
ON Semiconductor and KeyCorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ON Semiconductor and KeyCorp
The main advantage of trading using opposite ON Semiconductor and KeyCorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ON Semiconductor 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.| ON Semiconductor vs. Taiwan Semiconductor Manufacturing | ON Semiconductor vs. Apple Inc | ON Semiconductor vs. Alibaba Group Holding | ON Semiconductor vs. Microsoft |
| KeyCorp vs. Blau Farmacutica SA | KeyCorp vs. Citizens Financial Group | KeyCorp vs. Banco do Brasil | KeyCorp vs. Localiza Rent a |
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 CEOs Directory module to screen CEOs from public companies around the world.
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