Correlation Between Delaware Small and Perkins Mid

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Can any of the company-specific risk be diversified away by investing in both Delaware 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 Delaware 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 Delaware Small Cap and Perkins Mid Cap, you can compare the effects of market volatilities on Delaware 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 Delaware Small with a short position of Perkins Mid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delaware Small and Perkins Mid.

Diversification Opportunities for Delaware Small and Perkins Mid

0.93
  Correlation Coefficient

Almost no diversification

The 3 months correlation between Delaware and Perkins is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Delaware 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 Delaware 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 Delaware 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 Delaware Small i.e., Delaware Small and Perkins Mid go up and down completely randomly.

Pair Corralation between Delaware Small and Perkins Mid

Assuming the 90 days horizon Delaware Small Cap is expected to generate 1.44 times more return on investment than Perkins Mid. However, Delaware Small is 1.44 times more volatile than Perkins Mid Cap. It trades about 0.17 of its potential returns per unit of risk. Perkins Mid Cap is currently generating about 0.18 per unit of risk. If you would invest  4,877  in Delaware Small Cap on October 9, 2025 and sell it today you would earn a total of  1,117  from holding Delaware Small Cap or generate 22.9% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Strong
Accuracy100.0%
ValuesDaily Returns

Delaware Small Cap  vs.  Perkins Mid Cap

 Performance 
       Timeline  
Delaware Small Cap 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Delaware Small Cap are ranked lower than 13 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Delaware Small showed solid returns over the last few months and may actually be approaching a breakup point.
Perkins Mid Cap 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Perkins Mid Cap are ranked lower than 14 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Perkins Mid showed solid returns over the last few months and may actually be approaching a breakup point.

Delaware Small and Perkins Mid Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Delaware Small and Perkins Mid

The main advantage of trading using opposite Delaware Small and Perkins Mid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delaware 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 Delaware 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.
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..

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