Correlation Between Balanced Fund and Perkins Mid

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

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

Diversification Opportunities for Balanced Fund and Perkins Mid

0.0

Correlation Coefficient

Balanced Fund  Perkins Mid

Pay attention - limited upside

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

Pair Corralation between Balanced Fund and Perkins Mid

If you would invest (100.00) in Perkins Mid Cap on August 26, 2025 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	100.0%
Values	Daily Returns

Balanced Fund Class  vs.  Perkins Mid Cap

Balanced Fund Class

Risk-Adjusted Performance

Fair

Over the last 90 days Balanced Fund Class has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Balanced Fund 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

Weakest

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 fundamental 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 Balanced Fund and Perkins Mid

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

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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.