Correlation Between Fidelity 500 and Keeley Mid
Can any of the company-specific risk be diversified away by investing in both Fidelity 500 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 Fidelity 500 and Keeley Mid into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity 500 Index and Keeley Mid Cap, you can compare the effects of market volatilities on Fidelity 500 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 Fidelity 500 with a short position of Keeley Mid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity 500 and Keeley Mid.
Diversification Opportunities for Fidelity 500 and Keeley Mid
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Fidelity and Keeley is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity 500 Index 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 Fidelity 500 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 Fidelity 500 Index 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 Fidelity 500 i.e., Fidelity 500 and Keeley Mid go up and down completely randomly.
Pair Corralation between Fidelity 500 and Keeley Mid
Assuming the 90 days horizon Fidelity 500 is expected to generate 2.51 times less return on investment than Keeley Mid. But when comparing it to its historical volatility, Fidelity 500 Index is 1.31 times less risky than Keeley Mid. It trades about 0.14 of its potential returns per unit of risk. Keeley Mid Cap is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 3,190 in Keeley Mid Cap on August 29, 2024 and sell it today you would earn a total of 216.00 from holding Keeley Mid Cap or generate 6.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity 500 Index vs. Keeley Mid Cap
Performance |
| Timeline |
| Fidelity 500 Index |
| Keeley Mid Cap |
Fidelity 500 and Keeley Mid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity 500 and Keeley Mid
The main advantage of trading using opposite Fidelity 500 and Keeley Mid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity 500 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.| Fidelity 500 vs. Fidelity Total Market | Fidelity 500 vs. Fidelity Extended Market | Fidelity 500 vs. Fidelity Zero Total | Fidelity 500 vs. Fidelity Small Cap |
| 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |