Correlation Between KeyCorp and RYMAN HEALTHCAR

Can any of the company-specific risk be diversified away by investing in both KeyCorp and RYMAN HEALTHCAR 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 KeyCorp and RYMAN HEALTHCAR into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between KeyCorp and RYMAN HEALTHCAR, you can compare the effects of market volatilities on KeyCorp and RYMAN HEALTHCAR 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 KeyCorp with a short position of RYMAN HEALTHCAR. Check out your portfolio center. Please also check ongoing floating volatility patterns of KeyCorp and RYMAN HEALTHCAR.

Diversification Opportunities for KeyCorp and RYMAN HEALTHCAR

0.09

Correlation Coefficient

KeyCorp  RYMAN HEALTHCAR

Significant diversification

The 3 months correlation between KeyCorp and RYMAN is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding KeyCorp and RYMAN HEALTHCAR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RYMAN HEALTHCAR and KeyCorp 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 KeyCorp are associated (or correlated) with RYMAN HEALTHCAR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RYMAN HEALTHCAR has no effect on the direction of KeyCorp i.e., KeyCorp and RYMAN HEALTHCAR go up and down completely randomly.

Pair Corralation between KeyCorp and RYMAN HEALTHCAR

Assuming the 90 days horizon KeyCorp is expected to generate 1.5 times more return on investment than RYMAN HEALTHCAR. However, KeyCorp is 1.5 times more volatile than RYMAN HEALTHCAR. It trades about 0.02 of its potential returns per unit of risk. RYMAN HEALTHCAR is currently generating about -0.01 per unit of risk. If you would invest  1,458  in KeyCorp on October 4, 2024 and sell it today you would earn a total of  170.00  from holding KeyCorp or generate 11.66% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

KeyCorp  vs.  RYMAN HEALTHCAR

KeyCorp

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in KeyCorp are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, KeyCorp reported solid returns over the last few months and may actually be approaching a breakup point.

RYMAN HEALTHCAR

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in RYMAN HEALTHCAR are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, RYMAN HEALTHCAR is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with KeyCorp and RYMAN HEALTHCAR

The main advantage of trading using opposite KeyCorp and RYMAN HEALTHCAR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KeyCorp position performs unexpectedly, RYMAN HEALTHCAR 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 RYMAN HEALTHCAR will offset losses from the drop in RYMAN HEALTHCAR's long position.

The idea behind KeyCorp and RYMAN HEALTHCAR pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.