Correlation Between PT Bank and KeyCorp
Can any of the company-specific risk be diversified away by investing in both PT Bank 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 PT Bank and KeyCorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Bank Central and KeyCorp, you can compare the effects of market volatilities on PT Bank 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 PT Bank with a short position of KeyCorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bank and KeyCorp.
Diversification Opportunities for PT Bank and KeyCorp
Very good diversification
The 3 months correlation between PBCRF and KeyCorp is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding PT Bank Central and KeyCorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KeyCorp and PT Bank 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 PT Bank Central 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 PT Bank i.e., PT Bank and KeyCorp go up and down completely randomly.
Pair Corralation between PT Bank and KeyCorp
Assuming the 90 days horizon PT Bank Central is expected to generate 4.36 times more return on investment than KeyCorp. However, PT Bank is 4.36 times more volatile than KeyCorp. It trades about 0.01 of its potential returns per unit of risk. KeyCorp is currently generating about 0.01 per unit of risk. If you would invest 48.00 in PT Bank Central on August 20, 2025 and sell it today you would earn a total of 0.00 from holding PT Bank Central or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
PT Bank Central vs. KeyCorp
Performance |
| Timeline |
| PT Bank Central |
| KeyCorp |
PT Bank and KeyCorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Bank and KeyCorp
The main advantage of trading using opposite PT Bank and KeyCorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bank 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.| PT Bank vs. Postal Savings Bank | PT Bank vs. Lloyds Banking Group | PT Bank vs. ING Groep NV | PT Bank vs. Nordea Bank Abp |
| 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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