Correlation Between Oakworth Capital and KeyCorp
Can any of the company-specific risk be diversified away by investing in both Oakworth Capital 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 Oakworth Capital and KeyCorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oakworth Capital and KeyCorp, you can compare the effects of market volatilities on Oakworth Capital 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 Oakworth Capital with a short position of KeyCorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oakworth Capital and KeyCorp.
Diversification Opportunities for Oakworth Capital and KeyCorp
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Oakworth and KeyCorp is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Oakworth Capital and KeyCorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KeyCorp and Oakworth Capital 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 Oakworth Capital 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 Oakworth Capital i.e., Oakworth Capital and KeyCorp go up and down completely randomly.
Pair Corralation between Oakworth Capital and KeyCorp
Given the investment horizon of 90 days Oakworth Capital is expected to under-perform the KeyCorp. But the otc stock apears to be less risky and, when comparing its historical volatility, Oakworth Capital is 1.23 times less risky than KeyCorp. The otc stock trades about -0.19 of its potential returns per unit of risk. The KeyCorp is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 2,253 in KeyCorp on November 28, 2024 and sell it today you would earn a total of 5.00 from holding KeyCorp or generate 0.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Oakworth Capital vs. KeyCorp
Performance |
| Timeline |
| Oakworth Capital |
| KeyCorp |
Oakworth Capital and KeyCorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oakworth Capital and KeyCorp
The main advantage of trading using opposite Oakworth Capital and KeyCorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oakworth Capital 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.| Oakworth Capital vs. NRG Energy | Oakworth Capital vs. nLIGHT Inc | Oakworth Capital vs. American Electric Power | Oakworth Capital vs. Garmin |
| KeyCorp vs. KeyCorp | KeyCorp vs. Regions Financial | KeyCorp vs. US Bancorp | KeyCorp vs. Fifth Third Bancorp |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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