Correlation Between Todos Medical Ltd and KEYCORP

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

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

Diversification Opportunities for Todos Medical Ltd and KEYCORP

0.0

Correlation Coefficient

Todos Medical Ltd  KEYCORP

Pay attention - limited upside

The 3 months correlation between Todos and KEYCORP is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Todos Medical and KEYCORP MTN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KEYCORP MTN and Todos Medical Ltd 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 Todos Medical 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 Todos Medical Ltd i.e., Todos Medical Ltd and KEYCORP go up and down completely randomly.

Pair Corralation between Todos Medical Ltd and KEYCORP

Assuming the 90 days horizon Todos Medical is expected to generate 92.73 times more return on investment than KEYCORP. However, Todos Medical Ltd is 92.73 times more volatile than KEYCORP MTN. It trades about 0.05 of its potential returns per unit of risk. KEYCORP MTN is currently generating about 0.02 per unit of risk. If you would invest  0.05  in Todos Medical on October 5, 2024 and sell it today you would lose (0.05) from holding Todos Medical or give up 100.0% of portfolio value over 90 days.

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

Todos Medical  vs.  KEYCORP MTN

Todos Medical Ltd

Risk-Adjusted Performance

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Very Weak

Over the last 90 days Todos Medical has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable fundamental indicators, Todos Medical Ltd is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

KEYCORP MTN

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days KEYCORP MTN has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Bond's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for KEYCORP MTN investors.

Pair Trading with Todos Medical Ltd and KEYCORP

The main advantage of trading using opposite Todos Medical Ltd and KEYCORP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Todos Medical Ltd 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 Todos Medical and KEYCORP MTN 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.