Correlation Between CHUBU EL and Perseus Mining
Can any of the company-specific risk be diversified away by investing in both CHUBU EL and Perseus Mining 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 CHUBU EL and Perseus Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CHUBU EL and Perseus Mining Limited, you can compare the effects of market volatilities on CHUBU EL and Perseus Mining 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 CHUBU EL with a short position of Perseus Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of CHUBU EL and Perseus Mining.
Diversification Opportunities for CHUBU EL and Perseus Mining
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between CHUBU and Perseus is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding CHUBU EL and Perseus Mining Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Perseus Mining and CHUBU EL 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 CHUBU EL are associated (or correlated) with Perseus Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Perseus Mining has no effect on the direction of CHUBU EL i.e., CHUBU EL and Perseus Mining go up and down completely randomly.
Pair Corralation between CHUBU EL and Perseus Mining
Assuming the 90 days trading horizon CHUBU EL is expected to under-perform the Perseus Mining. But the stock apears to be less risky and, when comparing its historical volatility, CHUBU EL is 1.63 times less risky than Perseus Mining. The stock trades about -0.02 of its potential returns per unit of risk. The Perseus Mining Limited is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 168.00 in Perseus Mining Limited on November 28, 2024 and sell it today you would earn a total of 7.00 from holding Perseus Mining Limited or generate 4.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
CHUBU EL vs. Perseus Mining Limited
Performance |
| Timeline |
| CHUBU EL |
| Perseus Mining |
CHUBU EL and Perseus Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CHUBU EL and Perseus Mining
The main advantage of trading using opposite CHUBU EL and Perseus Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CHUBU EL position performs unexpectedly, Perseus Mining 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 Perseus Mining will offset losses from the drop in Perseus Mining's long position.| CHUBU EL vs. PLANT VEDA FOODS | CHUBU EL vs. GWILLI FOOD | CHUBU EL vs. MARKET VECTR RETAIL | CHUBU EL vs. GOME Retail Holdings |
| Perseus Mining vs. VIENNA INSURANCE GR | Perseus Mining vs. Singapore Reinsurance | Perseus Mining vs. HANOVER INSURANCE | Perseus Mining vs. CanSino Biologics |
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 Stocks Directory module to find actively traded stocks across global markets.
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