Correlation Between Perkins Select and Perkins Select
Can any of the company-specific risk be diversified away by investing in both Perkins Select and Perkins Select 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 Select and Perkins Select into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Perkins Select Value and Perkins Select Value, you can compare the effects of market volatilities on Perkins Select and Perkins Select 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 Select with a short position of Perkins Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of Perkins Select and Perkins Select.
Diversification Opportunities for Perkins Select and Perkins Select
1.0 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Perkins and Perkins is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Perkins Select Value and Perkins Select Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Perkins Select Value and Perkins Select 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 Select Value are associated (or correlated) with Perkins Select. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Perkins Select Value has no effect on the direction of Perkins Select i.e., Perkins Select and Perkins Select go up and down completely randomly.
Pair Corralation between Perkins Select and Perkins Select
Assuming the 90 days horizon Perkins Select Value is expected to generate 1.0 times more return on investment than Perkins Select. However, Perkins Select Value is 1.0 times less risky than Perkins Select. It trades about 0.07 of its potential returns per unit of risk. Perkins Select Value is currently generating about 0.07 per unit of risk. If you would invest 1,291 in Perkins Select Value on August 27, 2024 and sell it today you would earn a total of 537.00 from holding Perkins Select Value or generate 41.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Perkins Select Value vs. Perkins Select Value
Performance |
| Timeline |
| Perkins Select Value |
| Perkins Select Value |
Perkins Select and Perkins Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Perkins Select and Perkins Select
The main advantage of trading using opposite Perkins Select and Perkins Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Perkins Select position performs unexpectedly, Perkins Select 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 Perkins Select will offset losses from the drop in Perkins Select's long position.| Perkins Select vs. Janus Forty Fund | Perkins Select vs. Thornburg International Value | Perkins Select vs. Janus Overseas Fund | Perkins Select vs. Blackrock Equity Dividend |
| Perkins Select vs. Janus Global Real | Perkins Select vs. Perkins Select Value | Perkins Select vs. Janus Forty Fund | Perkins Select vs. Intech Managed Volatility |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |