Correlation Between Analog Devices and KEYCORP
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By analyzing existing cross correlation between Analog Devices and KEYCORP MEDIUM TERM, you can compare the effects of market volatilities on Analog Devices 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 Analog Devices with a short position of KEYCORP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Analog Devices and KEYCORP.
Diversification Opportunities for Analog Devices and KEYCORP
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Analog and KEYCORP is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Analog Devices and KEYCORP MEDIUM TERM in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KEYCORP MEDIUM TERM and Analog Devices 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 Analog Devices 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 MEDIUM TERM has no effect on the direction of Analog Devices i.e., Analog Devices and KEYCORP go up and down completely randomly.
Pair Corralation between Analog Devices and KEYCORP
Considering the 90-day investment horizon Analog Devices is expected to under-perform the KEYCORP. In addition to that, Analog Devices is 2.58 times more volatile than KEYCORP MEDIUM TERM. It trades about -0.06 of its total potential returns per unit of risk. KEYCORP MEDIUM TERM is currently generating about -0.14 per unit of volatility. If you would invest 9,700 in KEYCORP MEDIUM TERM on October 7, 2024 and sell it today you would lose (342.00) from holding KEYCORP MEDIUM TERM or give up 3.53% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Analog Devices vs. KEYCORP MEDIUM TERM
Performance |
Timeline |
Analog Devices |
KEYCORP MEDIUM TERM |
Analog Devices and KEYCORP Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Analog Devices and KEYCORP
The main advantage of trading using opposite Analog Devices and KEYCORP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Analog Devices 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.Analog Devices vs. NXP Semiconductors NV | Analog Devices vs. Qualcomm Incorporated | Analog Devices vs. Broadcom | Analog Devices vs. Microchip Technology |
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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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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