Correlation Between BlackRock ESG and Perkins Small

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

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

Diversification Opportunities for BlackRock ESG and Perkins Small

0.19

Correlation Coefficient

BlackRock ESG  Perkins Small

Average diversification

The 3 months correlation between BlackRock and Perkins is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding BlackRock ESG Capital and Perkins Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Perkins Small Cap and BlackRock ESG 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 BlackRock ESG Capital are associated (or correlated) with Perkins Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Perkins Small Cap has no effect on the direction of BlackRock ESG i.e., BlackRock ESG and Perkins Small go up and down completely randomly.

Pair Corralation between BlackRock ESG and Perkins Small

Given the investment horizon of 90 days BlackRock ESG Capital is expected to under-perform the Perkins Small. But the stock apears to be less risky and, when comparing its historical volatility, BlackRock ESG Capital is 1.22 times less risky than Perkins Small. The stock trades about -0.01 of its potential returns per unit of risk. The Perkins Small Cap is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest  2,353  in Perkins Small Cap on September 12, 2025 and sell it today you would lose (22.00) from holding Perkins Small Cap or give up 0.93% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

BlackRock ESG Capital  vs.  Perkins Small Cap

BlackRock ESG Capital

Risk-Adjusted Performance

Weakest

Over the last 90 days BlackRock ESG Capital has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, BlackRock ESG is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Perkins Small Cap

Risk-Adjusted Performance

Weakest

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

Pair Trading with BlackRock ESG and Perkins Small

The main advantage of trading using opposite BlackRock ESG and Perkins Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BlackRock ESG position performs unexpectedly, Perkins Small 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 Small will offset losses from the drop in Perkins Small's long position.

The idea behind BlackRock ESG Capital and Perkins Small 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.