Correlation Between Keeley Small and Jhancock Disciplined
Can any of the company-specific risk be diversified away by investing in both Keeley Small and Jhancock Disciplined 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 Small and Jhancock Disciplined into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Keeley Small Cap and Jhancock Disciplined Value, you can compare the effects of market volatilities on Keeley Small and Jhancock Disciplined 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 Small with a short position of Jhancock Disciplined. Check out your portfolio center. Please also check ongoing floating volatility patterns of Keeley Small and Jhancock Disciplined.
Diversification Opportunities for Keeley Small and Jhancock Disciplined
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Keeley and JHancock is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Keeley Small Cap and Jhancock Disciplined Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jhancock Disciplined and Keeley Small 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 Small Cap are associated (or correlated) with Jhancock Disciplined. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jhancock Disciplined has no effect on the direction of Keeley Small i.e., Keeley Small and Jhancock Disciplined go up and down completely randomly.
Pair Corralation between Keeley Small and Jhancock Disciplined
Assuming the 90 days horizon Keeley Small is expected to generate 1.0 times less return on investment than Jhancock Disciplined. In addition to that, Keeley Small is 1.3 times more volatile than Jhancock Disciplined Value. It trades about 0.03 of its total potential returns per unit of risk. Jhancock Disciplined Value is currently generating about 0.04 per unit of volatility. If you would invest 2,058 in Jhancock Disciplined Value on December 1, 2024 and sell it today you would earn a total of 286.00 from holding Jhancock Disciplined Value or generate 13.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Keeley Small Cap vs. Jhancock Disciplined Value
Performance |
| Timeline |
| Keeley Small Cap |
| Jhancock Disciplined |
Keeley Small and Jhancock Disciplined Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Keeley Small and Jhancock Disciplined
The main advantage of trading using opposite Keeley Small and Jhancock Disciplined positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Keeley Small position performs unexpectedly, Jhancock Disciplined 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 Jhancock Disciplined will offset losses from the drop in Jhancock Disciplined's long position.| Keeley Small vs. Touchstone Small Cap | Keeley Small vs. Goldman Sachs Small | Keeley Small vs. Ab Small Cap | Keeley Small vs. Small Pany Growth |
| Jhancock Disciplined vs. World Energy Fund | Jhancock Disciplined vs. Oil Gas Ultrasector | Jhancock Disciplined vs. Salient Mlp Energy | Jhancock Disciplined vs. Blackrock All Cap 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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