Correlation Between Us Targeted and Keeley Small
Can any of the company-specific risk be diversified away by investing in both Us Targeted 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 Us Targeted and Keeley Small into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Us Targeted Value and Keeley Small Cap, you can compare the effects of market volatilities on Us Targeted 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 Us Targeted with a short position of Keeley Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Us Targeted and Keeley Small.
Diversification Opportunities for Us Targeted and Keeley Small
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between DFFVX and Keeley is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Us Targeted Value and Keeley Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Keeley Small Cap and Us Targeted 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 Us Targeted Value 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 Cap has no effect on the direction of Us Targeted i.e., Us Targeted and Keeley Small go up and down completely randomly.
Pair Corralation between Us Targeted and Keeley Small
Assuming the 90 days horizon Us Targeted Value is expected to generate 1.24 times more return on investment than Keeley Small. However, Us Targeted is 1.24 times more volatile than Keeley Small Cap. It trades about 0.23 of its potential returns per unit of risk. Keeley Small Cap is currently generating about 0.28 per unit of risk. If you would invest 3,423 in Us Targeted Value on August 29, 2024 and sell it today you would earn a total of 306.00 from holding Us Targeted Value or generate 8.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Us Targeted Value vs. Keeley Small Cap
Performance |
| Timeline |
| Us Targeted Value |
| Keeley Small Cap |
Us Targeted and Keeley Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Us Targeted and Keeley Small
The main advantage of trading using opposite Us Targeted and Keeley Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Us Targeted 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.| Us Targeted vs. Dreyfus Government Cash | Us Targeted vs. Lord Abbett Government | Us Targeted vs. John Hancock Government | Us Targeted vs. Dunham Porategovernment Bond |
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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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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