Correlation Between Bny Mellon and Keeley Mid

Can any of the company-specific risk be diversified away by investing in both Bny Mellon 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 Bny Mellon and Keeley Mid into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Bny Mellon Mid and Keeley Mid Cap, you can compare the effects of market volatilities on Bny Mellon 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 Bny Mellon with a short position of Keeley Mid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bny Mellon and Keeley Mid.

Diversification Opportunities for Bny Mellon and Keeley Mid

0.87

Correlation Coefficient

Bny Mellon  Keeley Mid

Very poor diversification

The 3 months correlation between Bny and Keeley is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Bny Mellon Mid 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 Bny Mellon 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 Bny Mellon Mid 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 Bny Mellon i.e., Bny Mellon and Keeley Mid go up and down completely randomly.

Pair Corralation between Bny Mellon and Keeley Mid

Assuming the 90 days horizon Bny Mellon Mid is expected to generate 0.45 times more return on investment than Keeley Mid. However, Bny Mellon Mid is 2.23 times less risky than Keeley Mid. It trades about 0.21 of its potential returns per unit of risk. Keeley Mid Cap is currently generating about -0.07 per unit of risk. If you would invest  1,401  in Bny Mellon Mid on October 25, 2024 and sell it today you would earn a total of  43.00  from holding Bny Mellon Mid or generate 3.07% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	94.74%
Values	Daily Returns

Bny Mellon Mid  vs.  Keeley Mid Cap

Bny Mellon Mid

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Bny Mellon Mid has generated negative risk-adjusted returns adding no value to fund investors. In spite of weak performance in the last few months, the Fund's basic indicators remain fairly strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Keeley Mid Cap

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Keeley Mid Cap has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong forward indicators, Keeley Mid is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Bny Mellon and Keeley Mid

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

The idea behind Bny Mellon Mid and Keeley Mid 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.