Correlation Between U Haul and KEYCORP

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

By analyzing existing cross correlation between U Haul Holding and KEYCORP MEDIUM TERM, you can compare the effects of market volatilities on U Haul 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 U Haul with a short position of KEYCORP. Check out your portfolio center. Please also check ongoing floating volatility patterns of U Haul and KEYCORP.

Diversification Opportunities for U Haul and KEYCORP

0.25

Correlation Coefficient

U Haul  KEYCORP

Modest diversification

The 3 months correlation between UHAL and KEYCORP is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding U Haul Holding 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 U Haul 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 U Haul Holding 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 U Haul i.e., U Haul and KEYCORP go up and down completely randomly.

Pair Corralation between U Haul and KEYCORP

Given the investment horizon of 90 days U Haul Holding is expected to generate 2.15 times more return on investment than KEYCORP. However, U Haul is 2.15 times more volatile than KEYCORP MEDIUM TERM. It trades about 0.02 of its potential returns per unit of risk. KEYCORP MEDIUM TERM is currently generating about 0.0 per unit of risk. If you would invest  5,957  in U Haul Holding on September 21, 2024 and sell it today you would earn a total of  789.00  from holding U Haul Holding or generate 13.24% return on investment over 90 days.

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

U Haul Holding  vs.  KEYCORP MEDIUM TERM

U Haul Holding

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days U Haul Holding has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Stock's basic indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

KEYCORP MEDIUM TERM

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days KEYCORP MEDIUM TERM has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unfluctuating 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 MEDIUM TERM investors.

Pair Trading with U Haul and KEYCORP

The main advantage of trading using opposite U Haul and KEYCORP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if U Haul 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 U Haul Holding and KEYCORP MEDIUM TERM 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..