Correlation Between Perkins Mid and Eic Value
Can any of the company-specific risk be diversified away by investing in both Perkins Mid and Eic Value 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 Perkins Mid and Eic Value into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Perkins Mid Cap and Eic Value Fund, you can compare the effects of market volatilities on Perkins Mid and Eic Value 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 Perkins Mid with a short position of Eic Value. Check out your portfolio center. Please also check ongoing floating volatility patterns of Perkins Mid and Eic Value.
Diversification Opportunities for Perkins Mid and Eic Value
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Perkins and Eic is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Perkins Mid Cap and Eic Value Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eic Value Fund and Perkins 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 Perkins Mid Cap are associated (or correlated) with Eic Value. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eic Value Fund has no effect on the direction of Perkins Mid i.e., Perkins Mid and Eic Value go up and down completely randomly.
Pair Corralation between Perkins Mid and Eic Value
Assuming the 90 days horizon Perkins Mid is expected to generate 1.2 times less return on investment than Eic Value. In addition to that, Perkins Mid is 1.48 times more volatile than Eic Value Fund. It trades about 0.07 of its total potential returns per unit of risk. Eic Value Fund is currently generating about 0.12 per unit of volatility. If you would invest 1,582 in Eic Value Fund on September 3, 2024 and sell it today you would earn a total of 326.00 from holding Eic Value Fund or generate 20.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Perkins Mid Cap vs. Eic Value Fund
Performance |
| Timeline |
| Perkins Mid Cap |
| Eic Value Fund |
Perkins Mid and Eic Value Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Perkins Mid and Eic Value
The main advantage of trading using opposite Perkins Mid and Eic Value positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Perkins Mid position performs unexpectedly, Eic Value 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 Eic Value will offset losses from the drop in Eic Value's long position.| Perkins Mid vs. Janus Forty Fund | Perkins Mid vs. Thornburg International Value | Perkins Mid vs. Janus Overseas Fund | Perkins Mid vs. Blackrock Equity Dividend |
| Eic Value vs. Tax Managed Mid Small | Eic Value vs. Legg Mason Bw | Eic Value vs. Jhancock Diversified Macro | Eic Value vs. Davenport Small Cap |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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