Correlation Between Keeley Small and Keeley Mid
Can any of the company-specific risk be diversified away by investing in both Keeley Small and Keeley 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 Keeley Small and Keeley Mid 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 Keeley Mid Cap, you can compare the effects of market volatilities on Keeley Small and Keeley 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 Keeley Small with a short position of Keeley Mid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Keeley Small and Keeley Mid.
Diversification Opportunities for Keeley Small and Keeley Mid
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Keeley and Keeley is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Keeley Small Cap and Keeley Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Keeley Mid Cap 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 Keeley 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 Mid Cap has no effect on the direction of Keeley Small i.e., Keeley Small and Keeley Mid go up and down completely randomly.
Pair Corralation between Keeley Small and Keeley Mid
Assuming the 90 days horizon Keeley Small is expected to generate 1.42 times less return on investment than Keeley Mid. In addition to that, Keeley Small is 1.22 times more volatile than Keeley Mid Cap. It trades about 0.03 of its total potential returns per unit of risk. Keeley Mid Cap is currently generating about 0.06 per unit of volatility. If you would invest 2,615 in Keeley Mid Cap on August 29, 2024 and sell it today you would earn a total of 791.00 from holding Keeley Mid Cap or generate 30.25% 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. Keeley Mid Cap
Performance |
| Timeline |
| Keeley Small Cap |
| Keeley Mid Cap |
Keeley Small and Keeley Mid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Keeley Small and Keeley Mid
The main advantage of trading using opposite Keeley Small and Keeley Mid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Keeley Small position performs unexpectedly, Keeley 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 Mid will offset losses from the drop in Keeley Mid's long position.| Keeley Small vs. Vanguard Global Credit | Keeley Small vs. The Hartford Global | Keeley Small vs. Rbb Fund Trust | Keeley Small vs. T Rowe Price |
| 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 |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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