Correlation Between Keepers Holdings and Bank of the

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

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

Diversification Opportunities for Keepers Holdings and Bank of the

0.57

Correlation Coefficient

Keepers Holdings  Bank of the

Very weak diversification

The 3 months correlation between Keepers and Bank is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Keepers Holdings and Bank of the in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of the and Keepers Holdings 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 Keepers Holdings are associated (or correlated) with Bank of the. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of the has no effect on the direction of Keepers Holdings i.e., Keepers Holdings and Bank of the go up and down completely randomly.

Pair Corralation between Keepers Holdings and Bank of the

Assuming the 90 days trading horizon Keepers Holdings is expected to generate 0.87 times more return on investment than Bank of the. However, Keepers Holdings is 1.15 times less risky than Bank of the. It trades about -0.04 of its potential returns per unit of risk. Bank of the is currently generating about -0.03 per unit of risk. If you would invest  268.00  in Keepers Holdings on April 23, 2025 and sell it today you would lose (11.00) from holding Keepers Holdings or give up 4.1% of portfolio value over 90 days.

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

Keepers Holdings  vs.  Bank of the

Keepers Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Keepers Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable technical and fundamental indicators, Keepers Holdings is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Bank of the

Risk-Adjusted Performance

Very Weak

Over the last 90 days Bank of the has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, Bank of the is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Keepers Holdings and Bank of the

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

The idea behind Keepers Holdings and Bank of the 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.