Correlation Between Simt Mid and Keeley Mid
Can any of the company-specific risk be diversified away by investing in both Simt Mid 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 Simt Mid and Keeley Mid into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Simt Mid Cap and Keeley Mid Cap, you can compare the effects of market volatilities on Simt Mid 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 Simt Mid with a short position of Keeley Mid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simt Mid and Keeley Mid.
Diversification Opportunities for Simt Mid and Keeley Mid
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Simt and Keeley is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Simt Mid Cap 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 Simt Mid 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 Simt Mid Cap 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 Simt Mid i.e., Simt Mid and Keeley Mid go up and down completely randomly.
Pair Corralation between Simt Mid and Keeley Mid
Assuming the 90 days horizon Simt Mid Cap is expected to generate 0.83 times more return on investment than Keeley Mid. However, Simt Mid Cap is 1.21 times less risky than Keeley Mid. It trades about 0.17 of its potential returns per unit of risk. Keeley Mid Cap is currently generating about 0.14 per unit of risk. If you would invest 2,998 in Simt Mid Cap on May 30, 2025 and sell it today you would earn a total of 240.00 from holding Simt Mid Cap or generate 8.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 98.41% |
| Values | Daily Returns |
Simt Mid Cap vs. Keeley Mid Cap
Performance |
| Timeline |
| Simt Mid Cap |
| Keeley Mid Cap |
Risk-Adjusted Performance
Fair
Weak | Strong |
Simt Mid and Keeley Mid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Simt Mid and Keeley Mid
The main advantage of trading using opposite Simt Mid and Keeley Mid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simt Mid 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.| Simt Mid vs. Simt Large Cap | Simt Mid vs. Simt Small Cap | Simt Mid vs. Simt Large Cap | Simt Mid vs. Simt Small Cap |
| 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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