Correlation Between Rbb Fund and Keeley Small

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

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

Diversification Opportunities for Rbb Fund and Keeley Small

0.28

Correlation Coefficient

Rbb Fund  Keeley Small

Modest diversification

The 3 months correlation between Rbb and Keeley is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Rbb Fund Trust 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 Rbb Fund 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 Rbb Fund Trust 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 Rbb Fund i.e., Rbb Fund and Keeley Small go up and down completely randomly.

Pair Corralation between Rbb Fund and Keeley Small

Assuming the 90 days horizon Rbb Fund Trust is expected to under-perform the Keeley Small. In addition to that, Rbb Fund is 1.13 times more volatile than Keeley Small Cap. It trades about -0.07 of its total potential returns per unit of risk. Keeley Small Cap is currently generating about -0.06 per unit of volatility. If you would invest  1,810  in Keeley Small Cap on October 9, 2024 and sell it today you would lose (131.00) from holding Keeley Small Cap or give up 7.24% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Rbb Fund Trust  vs.  Keeley Small Cap

Rbb Fund Trust

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Rbb Fund Trust has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's technical and fundamental indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Keeley Small Cap

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Keeley Small Cap has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's forward indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Pair Trading with Rbb Fund and Keeley Small

The main advantage of trading using opposite Rbb Fund and Keeley Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rbb Fund 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 Rbb Fund Trust 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.