Correlation Between Dow Jones and KEYCORP
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By analyzing existing cross correlation between Dow Jones Industrial and KEYCORP MTN, you can compare the effects of market volatilities on Dow Jones 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 Dow Jones with a short position of KEYCORP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and KEYCORP.
Diversification Opportunities for Dow Jones and KEYCORP
Average diversification
The 3 months correlation between Dow and KEYCORP is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and KEYCORP MTN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KEYCORP MTN and Dow Jones 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 Dow Jones Industrial 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 MTN has no effect on the direction of Dow Jones i.e., Dow Jones and KEYCORP go up and down completely randomly.
Pair Corralation between Dow Jones and KEYCORP
Assuming the 90 days trading horizon Dow Jones Industrial is expected to generate 0.65 times more return on investment than KEYCORP. However, Dow Jones Industrial is 1.53 times less risky than KEYCORP. It trades about 0.0 of its potential returns per unit of risk. KEYCORP MTN is currently generating about -0.2 per unit of risk. If you would invest 4,193,845 in Dow Jones Industrial on December 11, 2024 and sell it today you would lose (2,674) from holding Dow Jones Industrial or give up 0.06% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 97.56% |
Values | Daily Returns |
Dow Jones Industrial vs. KEYCORP MTN
Performance |
Timeline |
Dow Jones and KEYCORP Volatility Contrast
Predicted Return Density |
Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
KEYCORP MTN
Pair trading matchups for KEYCORP
Pair Trading with Dow Jones and KEYCORP
The main advantage of trading using opposite Dow Jones and KEYCORP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones 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.Dow Jones vs. The Gap, | Dow Jones vs. Corporacion America Airports | Dow Jones vs. Mesa Air Group | Dow Jones vs. National Vision Holdings |
KEYCORP vs. Eastman Chemical | KEYCORP vs. Ecovyst | KEYCORP vs. FMC Corporation | KEYCORP vs. Luxfer Holdings PLC |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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