Correlation Between Boston Trust and Keeley Mid
Can any of the company-specific risk be diversified away by investing in both Boston Trust and Keeley Mid 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 Boston Trust and Keeley Mid into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boston Trust Midcap and Keeley Mid Cap, you can compare the effects of market volatilities on Boston Trust and Keeley Mid 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 Boston Trust with a short position of Keeley Mid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boston Trust and Keeley Mid.
Diversification Opportunities for Boston Trust and Keeley Mid
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Boston and Keeley is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Boston Trust Midcap and Keeley Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Keeley Mid Cap and Boston Trust 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 Boston Trust Midcap are associated (or correlated) with Keeley Mid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Keeley Mid Cap has no effect on the direction of Boston Trust i.e., Boston Trust and Keeley Mid go up and down completely randomly.
Pair Corralation between Boston Trust and Keeley Mid
Assuming the 90 days horizon Boston Trust is expected to generate 1.2 times less return on investment than Keeley Mid. But when comparing it to its historical volatility, Boston Trust Midcap is 1.32 times less risky than Keeley Mid. It trades about 0.12 of its potential returns per unit of risk. Keeley Mid Cap is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 2,938 in Keeley Mid Cap on August 25, 2024 and sell it today you would earn a total of 435.00 from holding Keeley Mid Cap or generate 14.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Boston Trust Midcap vs. Keeley Mid Cap
Performance |
| Timeline |
| Boston Trust Midcap |
| Keeley Mid Cap |
Boston Trust and Keeley Mid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boston Trust and Keeley Mid
The main advantage of trading using opposite Boston Trust and Keeley Mid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boston Trust position performs unexpectedly, Keeley Mid 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 Keeley Mid will offset losses from the drop in Keeley Mid's long position.| Boston Trust vs. Boston Trust Asset | Boston Trust vs. Virtus Kar Mid Cap | Boston Trust vs. Virtus Kar Mid Cap | Boston Trust vs. Boston Trust Small |
| Keeley Mid vs. Victory Sycamore Established | Keeley Mid vs. Columbia Select Large Cap | Keeley Mid vs. Boston Trust Midcap | Keeley Mid vs. Bny Mellon Mid |
Check out your portfolio center.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..
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