Correlation Between Keeley Small and Vanguard Global
Can any of the company-specific risk be diversified away by investing in both Keeley Small and Vanguard Global 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 Vanguard Global 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 Vanguard Global Credit, you can compare the effects of market volatilities on Keeley Small and Vanguard Global 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 Vanguard Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Keeley Small and Vanguard Global.
Diversification Opportunities for Keeley Small and Vanguard Global
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Keeley and Vanguard is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Keeley Small Cap and Vanguard Global Credit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vanguard Global Credit 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 Vanguard Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vanguard Global Credit has no effect on the direction of Keeley Small i.e., Keeley Small and Vanguard Global go up and down completely randomly.
Pair Corralation between Keeley Small and Vanguard Global
Assuming the 90 days horizon Keeley Small Cap is expected to generate 5.03 times more return on investment than Vanguard Global. However, Keeley Small is 5.03 times more volatile than Vanguard Global Credit. It trades about 0.32 of its potential returns per unit of risk. Vanguard Global Credit is currently generating about 0.23 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 Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Keeley Small Cap vs. Vanguard Global Credit
Performance |
| Timeline |
| Keeley Small Cap |
| Vanguard Global Credit |
Keeley Small and Vanguard Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Keeley Small and Vanguard Global
The main advantage of trading using opposite Keeley Small and Vanguard Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Keeley Small position performs unexpectedly, Vanguard Global 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 Vanguard Global will offset losses from the drop in Vanguard Global'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 |
| Vanguard Global vs. Fidelity Advisor Diversified | Vanguard Global vs. Pgim Conservative Retirement | Vanguard Global vs. Pioneer Diversified High | Vanguard Global vs. Massmutual Premier Diversified |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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