Correlation Between Champlain Mid and Keeley Small
Can any of the company-specific risk be diversified away by investing in both Champlain Mid and Keeley Small 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 Champlain Mid and Keeley Small into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Champlain Mid Cap and Keeley Small Mid Cap, you can compare the effects of market volatilities on Champlain Mid and Keeley Small 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 Champlain Mid with a short position of Keeley Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Champlain Mid and Keeley Small.
Diversification Opportunities for Champlain Mid and Keeley Small
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Champlain and Keeley is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Champlain Mid Cap 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 Champlain Mid 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 Champlain Mid Cap are associated (or correlated) with Keeley Small. 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 Champlain Mid i.e., Champlain Mid and Keeley Small go up and down completely randomly.
Pair Corralation between Champlain Mid and Keeley Small
Assuming the 90 days horizon Champlain Mid Cap is expected to generate 0.73 times more return on investment than Keeley Small. However, Champlain Mid Cap is 1.37 times less risky than Keeley Small. It trades about 0.06 of its potential returns per unit of risk. Keeley Small Mid Cap is currently generating about 0.03 per unit of risk. If you would invest 2,003 in Champlain Mid Cap on September 12, 2024 and sell it today you would earn a total of 602.00 from holding Champlain Mid Cap or generate 30.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Champlain Mid Cap vs. Keeley Small Mid Cap
Performance |
| Timeline |
| Champlain Mid Cap |
| Keeley Small Mid |
Champlain Mid and Keeley Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Champlain Mid and Keeley Small
The main advantage of trading using opposite Champlain Mid and Keeley Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Champlain Mid position performs unexpectedly, Keeley Small 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 will offset losses from the drop in Keeley Small's long position.| Champlain Mid vs. Champlain Small Pany | Champlain Mid vs. T Rowe Price | Champlain Mid vs. American Mutual Fund | Champlain Mid vs. Loomis Sayles Growth |
| Keeley Small vs. Franklin Emerging Market | Keeley Small vs. Black Oak Emerging | Keeley Small vs. Doubleline Emerging Markets | Keeley Small vs. Artisan Emerging Markets |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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