Correlation Between Quantex Fund and Keeley Mid

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

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

Diversification Opportunities for Quantex Fund and Keeley Mid

0.93

Correlation Coefficient

Quantex Fund  Keeley Mid

Almost no diversification

The 3 months correlation between Quantex and Keeley is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Quantex Fund Retail 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 Quantex 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 Quantex Fund Retail 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 Quantex Fund i.e., Quantex Fund and Keeley Mid go up and down completely randomly.

Pair Corralation between Quantex Fund and Keeley Mid

Assuming the 90 days horizon Quantex Fund is expected to generate 1.72 times less return on investment than Keeley Mid. But when comparing it to its historical volatility, Quantex Fund Retail is 1.31 times less risky than Keeley Mid. It trades about 0.16 of its potential returns per unit of risk. Keeley Mid Cap is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest  3,037  in Keeley Mid Cap on September 3, 2024 and sell it today you would earn a total of  378.00  from holding Keeley Mid Cap or generate 12.45% return on investment over 90 days.

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

Quantex Fund Retail  vs.  Keeley Mid Cap

Quantex Fund Retail

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Quantex Fund Retail are ranked lower than 12 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical and fundamental indicators, Quantex Fund may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Keeley Mid Cap

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Keeley Mid Cap are ranked lower than 16 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Keeley Mid may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Quantex Fund and Keeley Mid

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

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 CEOs Directory module to screen CEOs from public companies around the world.