Correlation Between Bogle Small and Perkins Mid

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

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

Diversification Opportunities for Bogle Small and Perkins Mid

0.0

Correlation Coefficient

Bogle Small  Perkins Mid

Pay attention - limited upside

The 3 months correlation between Bogle and Perkins is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bogle Small Cap 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 Bogle Small 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 Bogle Small Cap 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 Bogle Small i.e., Bogle Small and Perkins Mid go up and down completely randomly.

Pair Corralation between Bogle Small and Perkins Mid

If you would invest (100.00) in Perkins Mid Cap on December 21, 2024 and sell it today you would earn a total of  100.00  from holding Perkins Mid Cap or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Bogle Small Cap  vs.  Perkins Mid Cap

Bogle Small Cap

Risk-Adjusted Performance

Very Weak

Over the last 90 days Bogle Small Cap has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's forward indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Perkins Mid Cap

Risk-Adjusted Performance

Very Weak

Over the last 90 days Perkins Mid Cap has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Perkins Mid is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Bogle Small and Perkins Mid

The main advantage of trading using opposite Bogle Small and Perkins Mid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bogle Small 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.

The idea behind Bogle Small Cap and Perkins 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.

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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.