Correlation Between KEYCORP and Digi International
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By analyzing existing cross correlation between KEYCORP MTN and Digi International, you can compare the effects of market volatilities on KEYCORP and Digi International 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 Digi International. Check out your portfolio center. Please also check ongoing floating volatility patterns of KEYCORP and Digi International.
Diversification Opportunities for KEYCORP and Digi International
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between KEYCORP and Digi is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding KEYCORP MTN and Digi International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Digi International 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 MTN are associated (or correlated) with Digi International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Digi International has no effect on the direction of KEYCORP i.e., KEYCORP and Digi International go up and down completely randomly.
Pair Corralation between KEYCORP and Digi International
Assuming the 90 days trading horizon KEYCORP MTN is expected to under-perform the Digi International. But the bond apears to be less risky and, when comparing its historical volatility, KEYCORP MTN is 1.91 times less risky than Digi International. The bond trades about -0.2 of its potential returns per unit of risk. The Digi International is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 3,059 in Digi International on August 30, 2024 and sell it today you would earn a total of 208.00 from holding Digi International or generate 6.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KEYCORP MTN vs. Digi International
Performance |
| Timeline |
| KEYCORP MTN |
| Digi International |
KEYCORP and Digi International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KEYCORP and Digi International
The main advantage of trading using opposite KEYCORP and Digi International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KEYCORP position performs unexpectedly, Digi International 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 Digi International will offset losses from the drop in Digi International's long position.| KEYCORP vs. Pool Corporation | KEYCORP vs. Vindicator Silver Lead Mining | KEYCORP vs. Titan Machinery | KEYCORP vs. Getty Realty |
| Digi International vs. Extreme Networks | Digi International vs. Ciena Corp | Digi International vs. Harmonic | Digi International vs. Comtech Telecommunications Corp |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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