Correlation Between Keeley Mid and Keeley Small
Can any of the company-specific risk be diversified away by investing in both Keeley Mid 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 Keeley Mid and Keeley Small 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 Keeley Small Cap, you can compare the effects of market volatilities on Keeley Mid 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 Keeley Mid with a short position of Keeley Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Keeley Mid and Keeley Small.
Diversification Opportunities for Keeley Mid and Keeley Small
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Keeley and Keeley is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Keeley Mid Cap 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 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 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 Keeley Mid i.e., Keeley Mid and Keeley Small go up and down completely randomly.
Pair Corralation between Keeley Mid and Keeley Small
Assuming the 90 days horizon Keeley Mid is expected to generate 1.41 times less return on investment than Keeley Small. But when comparing it to its historical volatility, Keeley Mid Cap is 1.24 times less risky than Keeley Small. It trades about 0.24 of its potential returns per unit of risk. Keeley Small Cap is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 1,820 in Keeley Small Cap on August 25, 2024 and sell it today you would earn a total of 162.00 from holding Keeley Small Cap or generate 8.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Keeley Mid Cap vs. Keeley Small Cap
Performance |
| Timeline |
| Keeley Mid Cap |
| Keeley Small Cap |
Keeley Mid and Keeley Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Keeley Mid and Keeley Small
The main advantage of trading using opposite Keeley Mid and Keeley Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Keeley Mid 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.| 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 |
| Keeley Small vs. Keeley Mid Cap | Keeley Small vs. Keeley Mid Cap | Keeley Small vs. Keeley Small Mid Cap | Keeley Small vs. Keeley Small Mid Cap |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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