Correlation Between Keeley International and Keeley Alternative
Can any of the company-specific risk be diversified away by investing in both Keeley International and Keeley Alternative 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 Keeley International and Keeley Alternative into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Keeley International Small and Keeley Alternative Value, you can compare the effects of market volatilities on Keeley International and Keeley Alternative 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 Keeley International with a short position of Keeley Alternative. Check out your portfolio center. Please also check ongoing floating volatility patterns of Keeley International and Keeley Alternative.
Diversification Opportunities for Keeley International and Keeley Alternative
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Keeley and Keeley is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Keeley International Small and Keeley Alternative Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Keeley Alternative Value and Keeley International 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 Keeley International Small are associated (or correlated) with Keeley Alternative. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Keeley Alternative Value has no effect on the direction of Keeley International i.e., Keeley International and Keeley Alternative go up and down completely randomly.
Pair Corralation between Keeley International and Keeley Alternative
If you would invest (100.00) in Keeley Alternative Value on September 1, 2024 and sell it today you would earn a total of 100.00 from holding Keeley Alternative Value or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Keeley International Small vs. Keeley Alternative Value
Performance |
| Timeline |
| Keeley International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Keeley Alternative Value |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Keeley International and Keeley Alternative Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Keeley International and Keeley Alternative
The main advantage of trading using opposite Keeley International and Keeley Alternative positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Keeley International position performs unexpectedly, Keeley Alternative 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 Alternative will offset losses from the drop in Keeley Alternative's long position.| Keeley International vs. Pace High Yield | Keeley International vs. Legg Mason Partners | Keeley International vs. Prudential Short Duration | Keeley International vs. Msift High Yield |
| Keeley Alternative vs. Calvert Global Energy | Keeley Alternative vs. Hennessy Bp Energy | Keeley Alternative vs. Icon Natural Resources | Keeley Alternative vs. Firsthand Alternative Energy |
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.
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