Correlation Between RadNet and KeyCorp

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

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

Diversification Opportunities for RadNet and KeyCorp

-0.75

Correlation Coefficient

RadNet  KeyCorp

Pay attention - limited upside

The 3 months correlation between RadNet and KeyCorp is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding RadNet Inc and KeyCorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KeyCorp and RadNet 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 RadNet Inc 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 RadNet i.e., RadNet and KeyCorp go up and down completely randomly.

Pair Corralation between RadNet and KeyCorp

Given the investment horizon of 90 days RadNet Inc is expected to under-perform the KeyCorp. In addition to that, RadNet is 3.78 times more volatile than KeyCorp. It trades about -0.21 of its total potential returns per unit of risk. KeyCorp is currently generating about 0.17 per unit of volatility. If you would invest  2,339  in KeyCorp on December 21, 2024 and sell it today you would earn a total of  177.00  from holding KeyCorp or generate 7.57% return on investment over 90 days.

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

RadNet Inc  vs.  KeyCorp

RadNet Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days RadNet Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

KeyCorp

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in KeyCorp are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite fairly sluggish basic indicators, KeyCorp may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with RadNet and KeyCorp

The main advantage of trading using opposite RadNet and KeyCorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RadNet 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.

The idea behind RadNet Inc and KeyCorp 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.