Correlation Between KeyCorp and AIB Group

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

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

Diversification Opportunities for KeyCorp and AIB Group

0.0

Correlation Coefficient

KeyCorp  AIB Group

Pay attention - limited upside

The 3 months correlation between KeyCorp and AIB is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding KeyCorp and AIB Group PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AIB Group PLC 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 AIB Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AIB Group PLC has no effect on the direction of KeyCorp i.e., KeyCorp and AIB Group go up and down completely randomly.

Pair Corralation between KeyCorp and AIB Group

If you would invest  2,127  in KeyCorp on July 8, 2025 and sell it today you would earn a total of  154.00  from holding KeyCorp or generate 7.24% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

KeyCorp  vs.  AIB Group PLC

KeyCorp

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in KeyCorp are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite quite inconsistent basic indicators, KeyCorp may actually be approaching a critical reversion point that can send shares even higher in November 2025.

AIB Group PLC

Risk-Adjusted Performance

Weakest

Over the last 90 days AIB Group PLC has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, AIB Group is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with KeyCorp and AIB Group

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

The idea behind KeyCorp and AIB Group PLC 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..