Correlation Between Intech Us and Perkins Mid

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

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

Diversification Opportunities for Intech Us and Perkins Mid

0.51

Correlation Coefficient

Intech Us  Perkins Mid

Very weak diversification

The 3 months correlation between Intech and Perkins is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Intech Managed Volatility 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 Intech Us 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 Intech Managed Volatility 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 Intech Us i.e., Intech Us and Perkins Mid go up and down completely randomly.

Pair Corralation between Intech Us and Perkins Mid

Assuming the 90 days horizon Intech Managed Volatility is expected to generate 0.71 times more return on investment than Perkins Mid. However, Intech Managed Volatility is 1.41 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 -0.01 per unit of risk. If you would invest  1,112  in Intech Managed Volatility on October 13, 2024 and sell it today you would earn a total of  73.00  from holding Intech Managed Volatility or generate 6.56% return on investment over 90 days.

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

Intech Managed Volatility  vs.  Perkins Mid Cap

Intech Managed Volatility

Risk-Adjusted Performance

0 of 100

Very Weak

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

Perkins Mid Cap

Risk-Adjusted Performance

0 of 100

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 weak performance in the last few months, the Fund's forward indicators remain fairly strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Pair Trading with Intech Us and Perkins Mid

The main advantage of trading using opposite Intech Us and Perkins Mid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intech Us 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 Intech Managed Volatility 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.