15.92 -0.08 (-0.5%) Sell

Waiting to invest in KEY? Avoid at the moment as it was among the worst performers

13 min read

KEYCORP was among the worst performers today. It delivered -0.5% to close at 15.92. It's recent 5 day performance has been -4.36%, -2.22%, -1.95%, -5.37% and +0.55%.

[Themes containing KEY]

KEY showed a strong bearish trend over the last 3 months. During this period KEY delivered -20.12% and saw a maximum drawdown of -23.39%. There was a short signal during this period which returned +20.12%.


KEY has been underperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 5 Jul, 2016 to 7 Mar, 2018. Over the last 2 years 11 months and 7 days, KEY underperformed the SP500 index on 49% days. Which indicates that on days KEY underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

During the last three months KEY was mostly loss making and delivered on average -0.35% per day. It's best return during this period (of +3.75%) was on Thursday, 25 Oct, 2018. While it's worst loss in the same period (of -5.38%) was on Friday, 12 Oct, 2018. The longest stort-term trend during this period was 9 profitable days, which started on 29 Oct, 2018 and went on till 9 Nov, 2018. This bullish trend returned +10.27% to investors.

The last 12 months saw KEY's investors making profits in 6 months and incurring losses in 6 months. KEY was less consistent in delivering monthly returs than SP500 index. KEY was also a more risky investment than SP500 index as it's worst month in the last year, Dec 2018, returned -13.2% compared to -7.28% returned by SP500 index in Oct 2018. KEY had a shorter streak of profitable months than SP500 index. It only went up in 3 straight months during the last year. It is interesting to note that both KEY and SP500 index significantly outperform during months when quarterly/annual results are announced.

Risk comes from not knowing what you're doing.
-- Warren Buffett

KEY is currently seeing overall increase in volatility. In comparison, the SP500 index is seeing increase in volatility. During the last three months, there was a significant fall in KEY's volatility from 13 Sep, 2018 to 2 Oct, 2018. While there was a significant surge in the SP500 index's volatility from 13 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that KEY has significant positive skewness in it's return distribution. This indicates that investors can expect KEY to recover from drawdowns quickly. Which makes KEY a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

Investors trading in KEY derivatives at this moment can consider 'Calendar Spread' options strategy to receive better risk-adjusted returns.

KEY has more chance of extreme outcomes than the SP500 index. Therefore, KEY must receive a lower allocation than SP500 in your portfolio. SP500 index usually has shorter drawdown period than KEY.

On a general note (since you are interested in KEY), two instruments that have delivered similar performance as KEY are SAFM and WTFC. They are suitable as good alternative investment candidates that can diversify your portfolio.

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