Correlation Between Keeley Small and Keeley Small

Can any of the company-specific risk be diversified away by investing in both Keeley Small 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 Keeley Small and Keeley Small 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 Cap, you can compare the effects of market volatilities on Keeley Small 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 Keeley Small with a short position of Keeley Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Keeley Small and Keeley Small.

Diversification Opportunities for Keeley Small and Keeley Small

1.0

Correlation Coefficient

Keeley Small  Keeley Small

No risk reduction

The 3 months correlation between Keeley and Keeley is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Keeley Small Cap and Keeley Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Keeley Small 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 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 Cap has no effect on the direction of Keeley Small i.e., Keeley Small and Keeley Small go up and down completely randomly.

Pair Corralation between Keeley Small and Keeley Small

Assuming the 90 days horizon Keeley Small Cap is expected to generate 1.0 times more return on investment than Keeley Small. However, Keeley Small is 1.0 times more volatile than Keeley Small Cap. It trades about 0.13 of its potential returns per unit of risk. Keeley Small Cap is currently generating about 0.12 per unit of risk. If you would invest  1,645  in Keeley Small Cap on July 5, 2024 and sell it today you would earn a total of  169.00  from holding Keeley Small Cap or generate 10.27% 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 Small Cap

Keeley Small Cap

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Keeley Small Cap are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Keeley Small may actually be approaching a critical reversion point that can send shares even higher in November 2024.

Keeley Small Cap

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Keeley Small Cap are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Keeley Small may actually be approaching a critical reversion point that can send shares even higher in November 2024.

Pair Trading with Keeley Small and Keeley Small

The main advantage of trading using opposite Keeley Small and Keeley Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Keeley Small 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.

The idea behind Keeley Small Cap and Keeley Small Cap pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.