Correlation Between Six Circles and Keeley Mid
Can any of the company-specific risk be diversified away by investing in both Six Circles 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 Six Circles and Keeley Mid into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Six Circles Managed and Keeley Mid Cap, you can compare the effects of market volatilities on Six Circles 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 Six Circles with a short position of Keeley Mid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Six Circles and Keeley Mid.
Diversification Opportunities for Six Circles and Keeley Mid
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Six and Keeley is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Six Circles Managed 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 Six Circles 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 Six Circles Managed 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 Six Circles i.e., Six Circles and Keeley Mid go up and down completely randomly.
Pair Corralation between Six Circles and Keeley Mid
Assuming the 90 days horizon Six Circles is expected to generate 1.31 times less return on investment than Keeley Mid. But when comparing it to its historical volatility, Six Circles Managed is 1.52 times less risky than Keeley Mid. It trades about 0.36 of its potential returns per unit of risk. Keeley Mid Cap is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 3,170 in Keeley Mid Cap on September 1, 2024 and sell it today you would earn a total of 237.00 from holding Keeley Mid Cap or generate 7.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Six Circles Managed vs. Keeley Mid Cap
Performance |
| Timeline |
| Six Circles Managed |
| Keeley Mid Cap |
Six Circles and Keeley Mid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Six Circles and Keeley Mid
The main advantage of trading using opposite Six Circles and Keeley Mid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Six Circles 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.| Six Circles vs. Jennison Natural Resources | Six Circles vs. Hennessy Bp Energy | Six Circles vs. Icon Natural Resources | Six Circles vs. Short Oil Gas |
| Keeley Mid vs. Siit Emerging Markets | Keeley Mid vs. Shelton Emerging Markets | Keeley Mid vs. Calvert Developed Market | Keeley Mid vs. Transamerica 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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