Correlation Between Calvert Large and Perkins Mid

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

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

Diversification Opportunities for Calvert Large and Perkins Mid

0.99

Correlation Coefficient

Calvert Large  Perkins Mid

No risk reduction

The 3 months correlation between Calvert and Perkins is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Large 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 Calvert Large 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 Calvert Large 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 Calvert Large i.e., Calvert Large and Perkins Mid go up and down completely randomly.

Pair Corralation between Calvert Large and Perkins Mid

Assuming the 90 days horizon Calvert Large Cap is expected to generate 0.9 times more return on investment than Perkins Mid. However, Calvert Large Cap is 1.11 times less risky than Perkins Mid. It trades about 0.22 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  3,137  in Calvert Large Cap on April 30, 2025 and sell it today you would earn a total of  338.00  from holding Calvert Large Cap or generate 10.77% return on investment over 90 days.

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

Calvert Large Cap  vs.  Perkins Mid Cap

Calvert Large Cap

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Calvert Large Cap are ranked lower than 16 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Calvert Large may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Perkins Mid Cap

Risk-Adjusted Performance

Good

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 may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Calvert Large and Perkins Mid

The main advantage of trading using opposite Calvert Large and Perkins Mid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert Large 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 Calvert Large 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.