Correlation Between Sugi Holdings and KeyCorp

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

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

Diversification Opportunities for Sugi Holdings and KeyCorp

0.81

Correlation Coefficient

Sugi Holdings  KeyCorp

Very poor diversification

The 3 months correlation between Sugi and KeyCorp is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Sugi Holdings CoLtd and KeyCorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KeyCorp and Sugi 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 Sugi Holdings CoLtd 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 Sugi Holdings i.e., Sugi Holdings and KeyCorp go up and down completely randomly.

Pair Corralation between Sugi Holdings and KeyCorp

Assuming the 90 days horizon Sugi Holdings is expected to generate 1.04 times less return on investment than KeyCorp. In addition to that, Sugi Holdings is 1.21 times more volatile than KeyCorp. It trades about 0.14 of its total potential returns per unit of risk. KeyCorp is currently generating about 0.18 per unit of volatility. If you would invest  1,328  in KeyCorp on May 3, 2025 and sell it today you would earn a total of  242.00  from holding KeyCorp or generate 18.22% return on investment over 90 days.

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

Sugi Holdings CoLtd  vs.  KeyCorp

Sugi Holdings CoLtd

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Sugi Holdings CoLtd are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Sugi Holdings reported solid returns over the last few months and may actually be approaching a breakup point.

KeyCorp

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in KeyCorp are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, KeyCorp reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Sugi Holdings and KeyCorp

The main advantage of trading using opposite Sugi Holdings and KeyCorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sugi Holdings 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 Sugi Holdings CoLtd 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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.