Correlation Between Truist Financial and KeyCorp
Can any of the company-specific risk be diversified away by investing in both Truist Financial 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 Truist Financial and KeyCorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Truist Financial Corp and KeyCorp, you can compare the effects of market volatilities on Truist Financial 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 Truist Financial with a short position of KeyCorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Truist Financial and KeyCorp.
Diversification Opportunities for Truist Financial and KeyCorp
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Truist and KeyCorp is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Truist Financial Corp and KeyCorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KeyCorp and Truist Financial 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 Truist Financial Corp 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 Truist Financial i.e., Truist Financial and KeyCorp go up and down completely randomly.
Pair Corralation between Truist Financial and KeyCorp
Considering the 90-day investment horizon Truist Financial Corp is expected to under-perform the KeyCorp. In addition to that, Truist Financial is 4.32 times more volatile than KeyCorp. It trades about -0.04 of its total potential returns per unit of risk. KeyCorp is currently generating about 0.16 per unit of volatility. If you would invest 2,430 in KeyCorp on July 23, 2025 and sell it today you would earn a total of 87.00 from holding KeyCorp or generate 3.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Truist Financial Corp vs. KeyCorp
Performance |
| Timeline |
| Truist Financial Corp |
| KeyCorp |
Truist Financial and KeyCorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Truist Financial and KeyCorp
The main advantage of trading using opposite Truist Financial and KeyCorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Truist Financial 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.| Truist Financial vs. US Bancorp | Truist Financial vs. PNC Financial Services | Truist Financial vs. KeyCorp | Truist Financial vs. Zions Bancorporation |
| 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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