Correlation Between Ssga International and Perkins Mid
Can any of the company-specific risk be diversified away by investing in both Ssga International and Perkins 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 Ssga International and Perkins Mid into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ssga International Stock and Perkins Mid Cap, you can compare the effects of market volatilities on Ssga International and Perkins 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 Ssga International with a short position of Perkins Mid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ssga International and Perkins Mid.
Diversification Opportunities for Ssga International and Perkins Mid
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ssga and Perkins is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Ssga International Stock and Perkins Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Perkins Mid Cap and Ssga International 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 Ssga International Stock are associated (or correlated) with Perkins Mid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Perkins Mid Cap has no effect on the direction of Ssga International i.e., Ssga International and Perkins Mid go up and down completely randomly.
Pair Corralation between Ssga International and Perkins Mid
Assuming the 90 days horizon Ssga International is expected to generate 1.13 times less return on investment than Perkins Mid. But when comparing it to its historical volatility, Ssga International Stock is 1.08 times less risky than Perkins Mid. It trades about 0.06 of its potential returns per unit of risk. Perkins Mid Cap is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,389 in Perkins Mid Cap on August 26, 2024 and sell it today you would earn a total of 428.00 from holding Perkins Mid Cap or generate 30.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ssga International Stock vs. Perkins Mid Cap
Performance |
| Timeline |
| Ssga International Stock |
| Perkins Mid Cap |
Ssga International and Perkins Mid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ssga International and Perkins Mid
The main advantage of trading using opposite Ssga International and Perkins Mid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ssga International position performs unexpectedly, Perkins 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 Perkins Mid will offset losses from the drop in Perkins Mid's long position.| Ssga International vs. Schwab E Equity | Ssga International vs. Harding Loevner Emerging | Ssga International vs. Schwab Large Cap Growth | Ssga International vs. Schwab Dividend Equity |
| Perkins Mid vs. Janus Trarian Fund | Perkins Mid vs. Janus Overseas Fund | Perkins Mid vs. Janus Growth And | Perkins Mid vs. Janus Global Select |
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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