Correlation Between Mid Cap and Keeley Small
Can any of the company-specific risk be diversified away by investing in both Mid Cap 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 Mid Cap and Keeley Small into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mid Cap Growth and Keeley Small Mid Cap, you can compare the effects of market volatilities on Mid Cap 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 Mid Cap with a short position of Keeley Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mid Cap and Keeley Small.
Diversification Opportunities for Mid Cap and Keeley Small
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Mid and Keeley is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Mid Cap Growth 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 Mid Cap 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 Mid Cap Growth 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 Mid has no effect on the direction of Mid Cap i.e., Mid Cap and Keeley Small go up and down completely randomly.
Pair Corralation between Mid Cap and Keeley Small
Assuming the 90 days horizon Mid Cap Growth is expected to generate 0.8 times more return on investment than Keeley Small. However, Mid Cap Growth is 1.25 times less risky than Keeley Small. It trades about 0.09 of its potential returns per unit of risk. Keeley Small Mid Cap is currently generating about 0.03 per unit of risk. If you would invest 2,684 in Mid Cap Growth on September 12, 2024 and sell it today you would earn a total of 1,461 from holding Mid Cap Growth or generate 54.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mid Cap Growth vs. Keeley Small Mid Cap
Performance |
| Timeline |
| Mid Cap Growth |
| Keeley Small Mid |
Mid Cap and Keeley Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mid Cap and Keeley Small
The main advantage of trading using opposite Mid Cap and Keeley Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mid Cap 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.| Mid Cap vs. Touchstone Sustainability And | Mid Cap vs. Growth Opportunities Fund | Mid Cap vs. Total Return Fund | Mid Cap vs. William Blair International |
| Keeley Small vs. Franklin Emerging Market | Keeley Small vs. Black Oak Emerging | Keeley Small vs. Doubleline Emerging Markets | Keeley Small vs. Artisan Emerging Markets |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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