Correlation Between Perkins Mid and Sentinel Mon
Can any of the company-specific risk be diversified away by investing in both Perkins Mid and Sentinel Mon 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 Perkins Mid and Sentinel Mon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Perkins Mid Cap and Sentinel Mon Stock, you can compare the effects of market volatilities on Perkins Mid and Sentinel Mon 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 Perkins Mid with a short position of Sentinel Mon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Perkins Mid and Sentinel Mon.
Diversification Opportunities for Perkins Mid and Sentinel Mon
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Perkins and Sentinel is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Perkins Mid Cap and Sentinel Mon Stock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sentinel Mon Stock and Perkins Mid 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 Perkins Mid Cap are associated (or correlated) with Sentinel Mon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sentinel Mon Stock has no effect on the direction of Perkins Mid i.e., Perkins Mid and Sentinel Mon go up and down completely randomly.
Pair Corralation between Perkins Mid and Sentinel Mon
Assuming the 90 days horizon Perkins Mid Cap is expected to under-perform the Sentinel Mon. In addition to that, Perkins Mid is 1.06 times more volatile than Sentinel Mon Stock. It trades about -0.09 of its total potential returns per unit of risk. Sentinel Mon Stock is currently generating about 0.03 per unit of volatility. If you would invest 6,993 in Sentinel Mon Stock on August 22, 2025 and sell it today you would earn a total of 72.00 from holding Sentinel Mon Stock or generate 1.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.44% |
| Values | Daily Returns |
Perkins Mid Cap vs. Sentinel Mon Stock
Performance |
| Timeline |
| Perkins Mid Cap |
| Sentinel Mon Stock |
Perkins Mid and Sentinel Mon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Perkins Mid and Sentinel Mon
The main advantage of trading using opposite Perkins Mid and Sentinel Mon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Perkins Mid position performs unexpectedly, Sentinel Mon 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 Sentinel Mon will offset losses from the drop in Sentinel Mon's long position.| Perkins Mid vs. Perkins Mid Cap | Perkins Mid vs. Perkins Mid Cap | Perkins Mid vs. Wells Fargo Emerging | Perkins Mid vs. American Beacon Large |
| Sentinel Mon vs. Sentinel Mon Stock | Sentinel Mon vs. Mfs E Equity | Sentinel Mon vs. Sit International Equity | Sentinel Mon vs. Wells Fargo Growth |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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