Correlation Between Western Asset and Keeley Mid
Can any of the company-specific risk be diversified away by investing in both Western Asset 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 Western Asset and Keeley Mid into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Western Asset Premier and Keeley Mid Cap, you can compare the effects of market volatilities on Western Asset 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 Western Asset with a short position of Keeley Mid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Asset and Keeley Mid.
Diversification Opportunities for Western Asset and Keeley Mid
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Western and Keeley is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Western Asset Premier 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 Western Asset 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 Western Asset Premier 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 Western Asset i.e., Western Asset and Keeley Mid go up and down completely randomly.
Pair Corralation between Western Asset and Keeley Mid
If you would invest 3,198 in Keeley Mid Cap on August 29, 2024 and sell it today you would earn a total of 216.00 from holding Keeley Mid Cap or generate 6.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Western Asset Premier vs. Keeley Mid Cap
Performance |
| Timeline |
| Western Asset Premier |
| Keeley Mid Cap |
Western Asset and Keeley Mid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Asset and Keeley Mid
The main advantage of trading using opposite Western Asset and Keeley Mid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Asset 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.| Western Asset vs. Vanguard Total Stock | Western Asset vs. Vanguard 500 Index | Western Asset vs. Vanguard Total Stock | Western Asset vs. Vanguard Total Stock |
| 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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