Correlation Between Huntington Bancshares and KeyCorp
Can any of the company-specific risk be diversified away by investing in both Huntington Bancshares 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 Huntington Bancshares and KeyCorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Huntington Bancshares Incorporated and KeyCorp, you can compare the effects of market volatilities on Huntington Bancshares 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 Huntington Bancshares with a short position of KeyCorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huntington Bancshares and KeyCorp.
Diversification Opportunities for Huntington Bancshares and KeyCorp
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Huntington and KeyCorp is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Huntington Bancshares Incorpor and KeyCorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KeyCorp and Huntington Bancshares 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 Huntington Bancshares Incorporated 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 Huntington Bancshares i.e., Huntington Bancshares and KeyCorp go up and down completely randomly.
Pair Corralation between Huntington Bancshares and KeyCorp
Assuming the 90 days horizon Huntington Bancshares is expected to generate 1.72 times less return on investment than KeyCorp. But when comparing it to its historical volatility, Huntington Bancshares Incorporated is 1.04 times less risky than KeyCorp. It trades about 0.13 of its potential returns per unit of risk. KeyCorp is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 1,283 in KeyCorp on April 25, 2025 and sell it today you would earn a total of 302.00 from holding KeyCorp or generate 23.54% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Huntington Bancshares Incorpor vs. KeyCorp
Performance |
Timeline |
Huntington Bancshares |
KeyCorp |
Huntington Bancshares and KeyCorp Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Huntington Bancshares and KeyCorp
The main advantage of trading using opposite Huntington Bancshares and KeyCorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huntington Bancshares 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.Huntington Bancshares vs. ANTA Sports Products | Huntington Bancshares vs. Regions Financial | Huntington Bancshares vs. National Bank Holdings | Huntington Bancshares vs. CHIBA BANK |
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Check out your portfolio center.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 AI Portfolio Prophet module to use AI to generate optimal portfolios and find profitable investment opportunities.
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