Keycorp Preferred Stock Volatility
| KEY-PI Preferred Stock | USD 25.00 0.14 0.56% |
KeyCorp is very steady at the moment. KeyCorp has Sharpe Ratio of 0.0364, which conveys that the firm had a 0.0364% return per unit of risk over the last 3 months. We have found twenty-nine technical indicators for KeyCorp, which you can use to evaluate the volatility of the firm. Please verify KeyCorp's Risk Adjusted Performance of 0.056, mean deviation of 0.6053, and Downside Deviation of 0.699 to check out if the risk estimate we provide is consistent with the expected return of 0.0273%. Key indicators related to KeyCorp's volatility include:
90 Days Market Risk | Chance Of Distress | 90 Days Economic Sensitivity |
KeyCorp Preferred Stock volatility depicts how high the prices fluctuate around the mean (or its average) price. In other words, it is a statistical measure of the distribution of KeyCorp daily returns, and it is calculated using variance and standard deviation. We also use KeyCorp's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of KeyCorp volatility.
KeyCorp |
Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of KeyCorp at lower prices. For example, an investor can purchase KeyCorp stock that has halved in price over a short period. This will lower their average cost per share, thereby improving the overall portfolio performance when market normalizes.
Moving against KeyCorp Preferred Stock
KeyCorp Market Sensitivity And Downside Risk
KeyCorp's beta coefficient measures the volatility of KeyCorp preferred stock compared to the systematic risk of the entire market represented by your selected benchmark. In mathematical terms, beta represents the slope of the line through a regression of data points where each of these points represents KeyCorp preferred stock's returns against your selected market. In other words, KeyCorp's beta of 0.12 provides an investor with an approximation of how much risk KeyCorp preferred stock can potentially add to one of your existing portfolios. KeyCorp exhibits relatively low volatility with skewness of 0.63 and kurtosis of 1.42. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure KeyCorp's preferred stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact KeyCorp's preferred stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.
3 Months Beta |Analyze KeyCorp Demand TrendCheck current 90 days KeyCorp correlation with market (Dow Jones Industrial)KeyCorp Beta |
KeyCorp standard deviation measures the daily dispersion of prices over your selected time horizon relative to its mean. A typical volatile entity has a high standard deviation, while the deviation of a stable instrument is usually low. As a downside, the standard deviation calculates all uncertainty as risk, even when it is in your favor, such as above-average returns.
Standard Deviation | 0.75 |
It is essential to understand the difference between upside risk (as represented by KeyCorp's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of KeyCorp's daily returns or price. Since the actual investment returns on holding a position in keycorp preferred stock tend to have a non-normal distribution, there will be different probabilities for losses than for gains. The likelihood of losses is reflected in the downside risk of an investment in KeyCorp.
KeyCorp Preferred Stock Volatility Analysis
Volatility refers to the frequency at which KeyCorp preferred stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with KeyCorp's price changes. Investors will then calculate the volatility of KeyCorp's preferred stock to predict their future moves. A preferred stock that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A preferred stock with relatively stable price changes has low volatility. A highly volatile preferred stock is riskier, but the risk cuts both ways. Investing in highly volatile security can either be highly successful, or you may experience significant failure. There are two main types of KeyCorp's volatility:
Historical Volatility
This type of preferred stock volatility measures KeyCorp's fluctuations based on previous trends. It's commonly used to predict KeyCorp's future behavior based on its past. However, it cannot conclusively determine the future direction of the preferred stock.Implied Volatility
This type of volatility provides a positive outlook on future price fluctuations for KeyCorp's current market price. This means that the preferred stock will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on KeyCorp's to be redeemed at a future date.Transformation |
The output start index for this execution was zero with a total number of output elements of sixty-one. KeyCorp Average Price is the average of the sum of open, high, low and close daily prices of a bar. It can be used to smooth an indicator that normally takes just the closing price as input.
KeyCorp Projected Return Density Against Market
Assuming the 90 days trading horizon KeyCorp has a beta of 0.1235 . This indicates as returns on the market go up, KeyCorp average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding KeyCorp will be expected to be much smaller as well.Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to KeyCorp or Financial Services sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that KeyCorp's price will be affected by overall preferred stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a KeyCorp preferred stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
KeyCorp has an alpha of 0.0392, implying that it can generate a 0.0392 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a KeyCorp Price Volatility?
Several factors can influence a preferred stock's market volatility:Industry
Specific events can influence volatility within a particular industry. For instance, a significant weather upheaval in a crucial oil-production site may cause oil prices to increase in the oil sector. The direct result will be the rise in the stock price of oil distribution companies. Similarly, any government regulation in a specific industry could negatively influence stock prices due to increased regulations on compliance that may impact the company's future earnings and growth.Political and Economic environment
When governments make significant decisions regarding trade agreements, policies, and legislation regarding specific industries, they will influence stock prices. Everything from speeches to elections may influence investors, who can directly influence the stock prices in any particular industry. The prevailing economic situation also plays a significant role in stock prices. When the economy is doing well, investors will have a positive reaction and hence, better stock prices and vice versa.The Company's Performance
Sometimes volatility will only affect an individual company. For example, a revolutionary product launch or strong earnings report may attract many investors to purchase the company. This positive attention will raise the company's stock price. In contrast, product recalls and data breaches may negatively influence a company's stock prices.KeyCorp Preferred Stock Risk Measures
Assuming the 90 days trading horizon the coefficient of variation of KeyCorp is 2749.2. The daily returns are distributed with a variance of 0.57 and standard deviation of 0.75. The mean deviation of KeyCorp is currently at 0.57. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.75
α | Alpha over Dow Jones | 0.04 | |
β | Beta against Dow Jones | 0.12 | |
σ | Overall volatility | 0.75 | |
Ir | Information ratio | -0.04 |
KeyCorp Preferred Stock Return Volatility
KeyCorp historical daily return volatility represents how much of KeyCorp preferred stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm assumes 0.7518% volatility of returns over the 90 days investment horizon. By contrast, Dow Jones Industrial accepts 0.7608% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About KeyCorp Volatility
Volatility is a rate at which the price of KeyCorp or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of KeyCorp may increase or decrease. In other words, similar to KeyCorp's beta indicator, it measures the risk of KeyCorp and helps estimate the fluctuations that may happen in a short period of time. So if prices of KeyCorp fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility.
Please read more on our technical analysis page.KeyCorp operates as the holding company for KeyBank National Association that provides various retail and commercial banking services in the United States. KeyCorp was founded in 1849 and is headquartered in Cleveland, Ohio. KeyCorp Depositary operates under Banks - Regional - US classification in USA and is traded on New York Stock Exchange. It employs 17379 people.
KeyCorp's stock volatility refers to the amount of uncertainty or risk involved with the size of changes in its stock's price. It is a statistical measure of the dispersion of returns on KeyCorp Preferred Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much KeyCorp's price varies over time.
3 ways to utilize KeyCorp's volatility to invest better
Higher KeyCorp's preferred stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of KeyCorp preferred stock is relatively stable. Investors and traders use stock volatility as an indicator of risk and potential reward, as stocks with higher volatility can offer the potential for more significant returns but also come with a greater risk of losses. KeyCorp preferred stock volatility can provide helpful information for making investment decisions in the following ways:- Measuring Risk: Volatility can be used as a measure of risk, which can help you determine the potential fluctuations in the value of KeyCorp investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in KeyCorp's preferred stock can indicate that there is potential for significant price movements, either up or down, which could present investment opportunities.
- Diversification: Understanding how the volatility of KeyCorp's preferred stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
KeyCorp Investment Opportunity
Dow Jones Industrial has a standard deviation of returns of 0.76 and is 1.01 times more volatile than KeyCorp. 6 percent of all equities and portfolios are less risky than KeyCorp. You can use KeyCorp to enhance the returns of your portfolios. The preferred stock experiences a moderate upward volatility. Check odds of KeyCorp to be traded at $27.5 in 90 days.Average diversification
The correlation between KeyCorp and DJI is 0.11 (i.e., Average diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding KeyCorp and DJI in the same portfolio, assuming nothing else is changed.
KeyCorp Additional Risk Indicators
The analysis of KeyCorp's secondary risk indicators is one of the essential steps in making a buy or sell decision. The process involves identifying the amount of risk involved in KeyCorp's investment and either accepting that risk or mitigating it. Along with some common measures of KeyCorp preferred stock's risk such as standard deviation, beta, or value at risk, we also provide a set of secondary indicators that can assist in the individual investment decision or help in hedging the risk of your existing portfolios.
| Risk Adjusted Performance | 0.056 | |||
| Market Risk Adjusted Performance | 0.4131 | |||
| Mean Deviation | 0.6053 | |||
| Semi Deviation | 0.6106 | |||
| Downside Deviation | 0.699 | |||
| Coefficient Of Variation | 1363.34 | |||
| Standard Deviation | 0.815 |
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential preferred stocks, we recommend comparing similar preferred stocks with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.
KeyCorp Suggested Diversification Pairs
Pair trading is one of the very effective strategies used by professional day traders and hedge funds capitalizing on short-time and mid-term market inefficiencies. The approach is based on the fact that the ratio of prices of two correlating shares is long-term stable and oscillates around the average value. If the correlation ratio comes outside the common area, you can speculate with a high success rate that the ratio will return to the mean value and collect a profit.
The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against KeyCorp as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. KeyCorp's systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, KeyCorp's unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to KeyCorp.
Complementary Tools for KeyCorp Preferred Stock analysis
When running KeyCorp's price analysis, check to measure KeyCorp's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy KeyCorp is operating at the current time. Most of KeyCorp's value examination focuses on studying past and present price action to predict the probability of KeyCorp's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move KeyCorp's price. Additionally, you may evaluate how the addition of KeyCorp to your portfolios can decrease your overall portfolio volatility.
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |