Correlation Between Apple and KeyCorp
Can any of the company-specific risk be diversified away by investing in both Apple 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 Apple and KeyCorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apple Inc and KeyCorp, you can compare the effects of market volatilities on Apple 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 Apple with a short position of KeyCorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and KeyCorp.
Diversification Opportunities for Apple and KeyCorp
Very poor diversification
The 3 months correlation between Apple and KeyCorp is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and KeyCorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KeyCorp and Apple 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 Apple Inc 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 Apple i.e., Apple and KeyCorp go up and down completely randomly.
Pair Corralation between Apple and KeyCorp
Given the investment horizon of 90 days Apple Inc is expected to generate 4.06 times more return on investment than KeyCorp. However, Apple is 4.06 times more volatile than KeyCorp. It trades about 0.22 of its potential returns per unit of risk. KeyCorp is currently generating about 0.11 per unit of risk. If you would invest 21,978 in Apple Inc on August 7, 2025 and sell it today you would earn a total of 5,026 from holding Apple Inc or generate 22.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apple Inc vs. KeyCorp
Performance |
| Timeline |
| Apple Inc |
| KeyCorp |
Apple and KeyCorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apple and KeyCorp
The main advantage of trading using opposite Apple and KeyCorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple 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.| Apple vs. Seagate Technology PLC | Apple vs. Super Micro Computer | Apple vs. Rigetti Computing | Apple vs. Fair Isaac |
| KeyCorp vs. Truist Financial Corp | KeyCorp vs. Huntington Bancshares Incorporated | KeyCorp vs. Fifth Third Bancorp | KeyCorp vs. US 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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