Correlation Between SYSTEMAIR and Perseus Mining
Can any of the company-specific risk be diversified away by investing in both SYSTEMAIR 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 SYSTEMAIR and Perseus Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SYSTEMAIR AB and Perseus Mining Limited, you can compare the effects of market volatilities on SYSTEMAIR 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 SYSTEMAIR with a short position of Perseus Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of SYSTEMAIR and Perseus Mining.
Diversification Opportunities for SYSTEMAIR and Perseus Mining
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between SYSTEMAIR and Perseus is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding SYSTEMAIR AB and Perseus Mining Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Perseus Mining and SYSTEMAIR 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 SYSTEMAIR AB 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 SYSTEMAIR i.e., SYSTEMAIR and Perseus Mining go up and down completely randomly.
Pair Corralation between SYSTEMAIR and Perseus Mining
Assuming the 90 days trading horizon SYSTEMAIR AB is expected to generate 1.06 times more return on investment than Perseus Mining. However, SYSTEMAIR is 1.06 times more volatile than Perseus Mining Limited. It trades about 0.08 of its potential returns per unit of risk. Perseus Mining Limited is currently generating about 0.06 per unit of risk. If you would invest 501.00 in SYSTEMAIR AB on August 29, 2024 and sell it today you would earn a total of 292.00 from holding SYSTEMAIR AB or generate 58.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SYSTEMAIR AB vs. Perseus Mining Limited
Performance |
| Timeline |
| SYSTEMAIR AB |
| Perseus Mining |
SYSTEMAIR and Perseus Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SYSTEMAIR and Perseus Mining
The main advantage of trading using opposite SYSTEMAIR and Perseus Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SYSTEMAIR 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.| SYSTEMAIR vs. AUST AGRICULTURAL | SYSTEMAIR vs. AGRICULTBK HADR25 YC | SYSTEMAIR vs. GEAR4MUSIC LS 10 | SYSTEMAIR vs. TITAN MACHINERY |
| Perseus Mining vs. Franco Nevada | Perseus Mining vs. Agnico Eagle Mines | Perseus Mining vs. Superior Plus Corp | Perseus Mining vs. NMI Holdings |
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.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Transaction History View history of all your transactions and understand their impact on performance |