Correlation Between KeyCorp and Roblox Corp

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

By analyzing existing cross correlation between KeyCorp and Roblox Corp, you can compare the effects of market volatilities on KeyCorp and Roblox Corp 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 Roblox Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of KeyCorp and Roblox Corp.

Diversification Opportunities for KeyCorp and Roblox Corp

0.56

Correlation Coefficient

KeyCorp  Roblox Corp

Very weak diversification

The 3 months correlation between KeyCorp and Roblox is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding KeyCorp and Roblox Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Roblox Corp 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 are associated (or correlated) with Roblox Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Roblox Corp has no effect on the direction of KeyCorp i.e., KeyCorp and Roblox Corp go up and down completely randomly.

Pair Corralation between KeyCorp and Roblox Corp

Assuming the 90 days trading horizon KeyCorp is expected to generate 44.6 times less return on investment than Roblox Corp. But when comparing it to its historical volatility, KeyCorp is 5.98 times less risky than Roblox Corp. It trades about 0.04 of its potential returns per unit of risk. Roblox Corp is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest  7,349  in Roblox Corp on May 10, 2025 and sell it today you would earn a total of  5,522  from holding Roblox Corp or generate 75.14% return on investment over 90 days.

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

KeyCorp  vs.  Roblox Corp

KeyCorp

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in KeyCorp are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong basic indicators, KeyCorp is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Roblox Corp

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Roblox Corp are ranked lower than 25 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak essential indicators, Roblox Corp showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with KeyCorp and Roblox Corp

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

The idea behind KeyCorp and Roblox Corp 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.