Correlation Between KEYCORP and Amkor Technology

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

By analyzing existing cross correlation between KEYCORP MEDIUM TERM and Amkor Technology, you can compare the effects of market volatilities on KEYCORP and Amkor Technology 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 Amkor Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of KEYCORP and Amkor Technology.

Diversification Opportunities for KEYCORP and Amkor Technology

0.34

Correlation Coefficient

KEYCORP  Amkor Technology

Weak diversification

The 3 months correlation between KEYCORP and Amkor is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding KEYCORP MEDIUM TERM and Amkor Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amkor Technology 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 MEDIUM TERM are associated (or correlated) with Amkor Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amkor Technology has no effect on the direction of KEYCORP i.e., KEYCORP and Amkor Technology go up and down completely randomly.

Pair Corralation between KEYCORP and Amkor Technology

Assuming the 90 days trading horizon KEYCORP MEDIUM TERM is expected to under-perform the Amkor Technology. But the bond apears to be less risky and, when comparing its historical volatility, KEYCORP MEDIUM TERM is 3.24 times less risky than Amkor Technology. The bond trades about -0.01 of its potential returns per unit of risk. The Amkor Technology is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest  2,990  in Amkor Technology on October 4, 2024 and sell it today you would lose (388.00) from holding Amkor Technology or give up 12.98% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	99.8%
Values	Daily Returns

KEYCORP MEDIUM TERM  vs.  Amkor Technology

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 somewhat strong basic indicators, KEYCORP is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Amkor Technology

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Amkor Technology has generated negative risk-adjusted returns adding no value to investors with long positions. Even with inconsistent performance in the last few months, the Stock's forward-looking signals remain relatively invariable which may send shares a bit higher in February 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with KEYCORP and Amkor Technology

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

The idea behind KEYCORP MEDIUM TERM and Amkor Technology 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.