Correlation Between SMUCKER and KeyCorp
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By analyzing existing cross correlation between SMUCKER J M and KeyCorp, you can compare the effects of market volatilities on SMUCKER 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 SMUCKER with a short position of KeyCorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of SMUCKER and KeyCorp.
Diversification Opportunities for SMUCKER and KeyCorp
Very weak diversification
The 3 months correlation between SMUCKER and KeyCorp is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding SMUCKER J M and KeyCorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KeyCorp and SMUCKER 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 SMUCKER J M 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 SMUCKER i.e., SMUCKER and KeyCorp go up and down completely randomly.
Pair Corralation between SMUCKER and KeyCorp
Assuming the 90 days trading horizon SMUCKER is expected to generate 1.1 times less return on investment than KeyCorp. In addition to that, SMUCKER is 1.08 times more volatile than KeyCorp. It trades about 0.08 of its total potential returns per unit of risk. KeyCorp is currently generating about 0.09 per unit of volatility. If you would invest 2,300 in KeyCorp on September 3, 2024 and sell it today you would earn a total of 266.00 from holding KeyCorp or generate 11.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 49.32% |
| Values | Daily Returns |
SMUCKER J M vs. KeyCorp
Performance |
| Timeline |
| SMUCKER J M |
| KeyCorp |
SMUCKER and KeyCorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SMUCKER and KeyCorp
The main advantage of trading using opposite SMUCKER and KeyCorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SMUCKER 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.| SMUCKER vs. KeyCorp | SMUCKER vs. Philip Morris International | SMUCKER vs. Juniata Valley Financial | SMUCKER vs. Chiba Bank Ltd |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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