Correlation Between Keeley Small and Keeley Small-mid
Can any of the company-specific risk be diversified away by investing in both Keeley Small and Keeley Small-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 Small-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 Small Mid Cap, you can compare the effects of market volatilities on Keeley Small and Keeley Small-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 Small-mid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Keeley Small and Keeley Small-mid.
Diversification Opportunities for Keeley Small and Keeley Small-mid
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Keeley and Keeley is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Keeley Small Cap and Keeley Small Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Keeley Small Mid 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 Small-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 Small Mid has no effect on the direction of Keeley Small i.e., Keeley Small and Keeley Small-mid go up and down completely randomly.
Pair Corralation between Keeley Small and Keeley Small-mid
Assuming the 90 days horizon Keeley Small Cap is expected to generate 1.24 times more return on investment than Keeley Small-mid. However, Keeley Small is 1.24 times more volatile than Keeley Small Mid Cap. It trades about 0.32 of its potential returns per unit of risk. Keeley Small Mid Cap is currently generating about 0.35 per unit of risk. If you would invest 1,827 in Keeley Small Cap on September 1, 2024 and sell it today you would earn a total of 172.00 from holding Keeley Small Cap or generate 9.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Keeley Small Cap vs. Keeley Small Mid Cap
Performance |
| Timeline |
| Keeley Small Cap |
| Keeley Small Mid |
Keeley Small and Keeley Small-mid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Keeley Small and Keeley Small-mid
The main advantage of trading using opposite Keeley Small and Keeley Small-mid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Keeley Small position performs unexpectedly, Keeley Small-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 Small-mid will offset losses from the drop in Keeley Small-mid's long position.| Keeley Small vs. Fundamental Large Cap | Keeley Small vs. Qs Large Cap | Keeley Small vs. Jhancock Disciplined Value | Keeley Small vs. Dunham Large Cap |
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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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