Correlation Between KEYBANK and Weyco

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

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

Diversification Opportunities for KEYBANK and Weyco

0.12

Correlation Coefficient

KEYBANK  Weyco

Average diversification

The 3 months correlation between KEYBANK and Weyco is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding KEYBANK NATL ASSN and Weyco Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Weyco Group and KEYBANK 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 KEYBANK NATL ASSN are associated (or correlated) with Weyco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Weyco Group has no effect on the direction of KEYBANK i.e., KEYBANK and Weyco go up and down completely randomly.

Pair Corralation between KEYBANK and Weyco

Assuming the 90 days trading horizon KEYBANK NATL ASSN is expected to generate 0.25 times more return on investment than Weyco. However, KEYBANK NATL ASSN is 4.04 times less risky than Weyco. It trades about -0.13 of its potential returns per unit of risk. Weyco Group is currently generating about -0.23 per unit of risk. If you would invest  9,917  in KEYBANK NATL ASSN on December 24, 2024 and sell it today you would lose (158.00) from holding KEYBANK NATL ASSN or give up 1.59% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	47.54%
Values	Daily Returns

KEYBANK NATL ASSN  vs.  Weyco Group

KEYBANK NATL ASSN

Risk-Adjusted Performance

Very Weak

Over the last 90 days KEYBANK NATL ASSN has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, KEYBANK is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Weyco Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days Weyco Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating 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.

Pair Trading with KEYBANK and Weyco

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

The idea behind KEYBANK NATL ASSN and Weyco Group 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.