Correlation Between Keeley Mid and California Bond
Can any of the company-specific risk be diversified away by investing in both Keeley Mid and California Bond 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 Mid and California Bond into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Keeley Mid Cap and California Bond Fund, you can compare the effects of market volatilities on Keeley Mid and California Bond 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 Mid with a short position of California Bond. Check out your portfolio center. Please also check ongoing floating volatility patterns of Keeley Mid and California Bond.
Diversification Opportunities for Keeley Mid and California Bond
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Keeley and California is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Keeley Mid Cap and California Bond Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on California Bond and Keeley Mid 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 Mid Cap are associated (or correlated) with California Bond. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of California Bond has no effect on the direction of Keeley Mid i.e., Keeley Mid and California Bond go up and down completely randomly.
Pair Corralation between Keeley Mid and California Bond
Assuming the 90 days horizon Keeley Mid Cap is expected to under-perform the California Bond. In addition to that, Keeley Mid is 6.46 times more volatile than California Bond Fund. It trades about -0.04 of its total potential returns per unit of risk. California Bond Fund is currently generating about -0.09 per unit of volatility. If you would invest 1,027 in California Bond Fund on October 20, 2024 and sell it today you would lose (5.00) from holding California Bond Fund or give up 0.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Keeley Mid Cap vs. California Bond Fund
Performance |
| Timeline |
| Keeley Mid Cap |
| California Bond |
Keeley Mid and California Bond Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Keeley Mid and California Bond
The main advantage of trading using opposite Keeley Mid and California Bond positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Keeley Mid position performs unexpectedly, California Bond 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 California Bond will offset losses from the drop in California Bond's long position.| 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 |
| California Bond vs. Tiaa Cref Inflation Linked Bond | California Bond vs. Ab Bond Inflation | California Bond vs. Aqr Managed Futures | California Bond vs. Short Duration Inflation |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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