Correlation Between Sp 500 and Keeley Small-mid
Can any of the company-specific risk be diversified away by investing in both Sp 500 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 Sp 500 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 Sp 500 Equal and Keeley Small Mid Cap, you can compare the effects of market volatilities on Sp 500 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 Sp 500 with a short position of Keeley Small-mid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sp 500 and Keeley Small-mid.
Diversification Opportunities for Sp 500 and Keeley Small-mid
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between INDEX and Keeley is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Sp 500 Equal 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 Sp 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 Sp 500 Equal 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 Sp 500 i.e., Sp 500 and Keeley Small-mid go up and down completely randomly.
Pair Corralation between Sp 500 and Keeley Small-mid
Assuming the 90 days horizon Sp 500 is expected to generate 1.51 times less return on investment than Keeley Small-mid. But when comparing it to its historical volatility, Sp 500 Equal is 1.54 times less risky than Keeley Small-mid. It trades about 0.36 of its potential returns per unit of risk. Keeley Small Mid Cap is currently generating about 0.35 of returns per unit of risk over similar time horizon. If you would invest 996.00 in Keeley Small Mid Cap on September 1, 2024 and sell it today you would earn a total of 88.00 from holding Keeley Small Mid Cap or generate 8.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sp 500 Equal vs. Keeley Small Mid Cap
Performance |
| Timeline |
| Sp 500 Equal |
| Keeley Small Mid |
Sp 500 and Keeley Small-mid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sp 500 and Keeley Small-mid
The main advantage of trading using opposite Sp 500 and Keeley Small-mid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sp 500 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.| Sp 500 vs. Dana Large Cap | Sp 500 vs. Qs Large Cap | Sp 500 vs. Fidelity Series 1000 | Sp 500 vs. Dunham Large Cap |
| Keeley Small-mid vs. Inflation Protected Bond Fund | Keeley Small-mid vs. Legg Mason Partners | Keeley Small-mid vs. Thrivent Income Fund | Keeley Small-mid vs. T Rowe Price |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |