Correlation Between Roblox Corp and KeyCorp

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

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

Diversification Opportunities for Roblox Corp and KeyCorp

0.72

Correlation Coefficient

Roblox Corp  KeyCorp

Poor diversification

The 3 months correlation between Roblox and KeyCorp is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Roblox Corp and KeyCorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KeyCorp and Roblox Corp 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 Roblox Corp 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 Roblox Corp i.e., Roblox Corp and KeyCorp go up and down completely randomly.

Pair Corralation between Roblox Corp and KeyCorp

Given the investment horizon of 90 days Roblox Corp is expected to under-perform the KeyCorp. In addition to that, Roblox Corp is 18.23 times more volatile than KeyCorp. It trades about -0.02 of its total potential returns per unit of risk. KeyCorp is currently generating about 0.05 per unit of volatility. If you would invest  2,484  in KeyCorp on May 21, 2025 and sell it today you would earn a total of  6.00  from holding KeyCorp or generate 0.24% return on investment over 90 days.

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

Roblox Corp  vs.  KeyCorp

Roblox Corp

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Roblox Corp are ranked lower than 17 (%) 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.

KeyCorp

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in KeyCorp are ranked lower than 4 (%) 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.

Pair Trading with Roblox Corp and KeyCorp

The main advantage of trading using opposite Roblox Corp and KeyCorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Roblox Corp 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.

The idea behind Roblox Corp and KeyCorp 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.