Correlation Between Barings Active and Keeley Small-mid
Can any of the company-specific risk be diversified away by investing in both Barings Active and Keeley Small-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 Barings Active and Keeley Small-mid into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barings Active Short and Keeley Small Mid Cap, you can compare the effects of market volatilities on Barings Active and Keeley Small-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 Barings Active with a short position of Keeley Small-mid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barings Active and Keeley Small-mid.
Diversification Opportunities for Barings Active and Keeley Small-mid
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Barings and Keeley is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Barings Active Short and Keeley Small Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Keeley Small Mid and Barings Active 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 Barings Active Short are associated (or correlated) with Keeley Small-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 Small Mid has no effect on the direction of Barings Active i.e., Barings Active and Keeley Small-mid go up and down completely randomly.
Pair Corralation between Barings Active and Keeley Small-mid
Assuming the 90 days horizon Barings Active is expected to generate 23.63 times less return on investment than Keeley Small-mid. But when comparing it to its historical volatility, Barings Active Short is 8.49 times less risky than Keeley Small-mid. It trades about 0.11 of its potential returns per unit of risk. Keeley Small Mid Cap is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 1,001 in Keeley Small Mid Cap on August 30, 2024 and sell it today you would earn a total of 79.00 from holding Keeley Small Mid Cap or generate 7.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Barings Active Short vs. Keeley Small Mid Cap
Performance |
| Timeline |
| Barings Active Short |
| Keeley Small Mid |
Barings Active and Keeley Small-mid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barings Active and Keeley Small-mid
The main advantage of trading using opposite Barings Active and Keeley Small-mid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barings Active position performs unexpectedly, Keeley Small-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 Small-mid will offset losses from the drop in Keeley Small-mid's long position.| Barings Active vs. Us Government Securities | Barings Active vs. Prudential Government Income | Barings Active vs. Us Government Plus | Barings Active vs. Us Government Securities |
| Keeley Small-mid vs. Qs Growth Fund | Keeley Small-mid vs. Omni Small Cap Value | Keeley Small-mid vs. Growth Fund Of | Keeley Small-mid vs. Barings Active Short |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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