Correlation Between GAMES OPERATORS and Perseus Mining
Can any of the company-specific risk be diversified away by investing in both GAMES OPERATORS 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 GAMES OPERATORS and Perseus Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GAMES OPERATORS SA and Perseus Mining Limited, you can compare the effects of market volatilities on GAMES OPERATORS 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 GAMES OPERATORS with a short position of Perseus Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of GAMES OPERATORS and Perseus Mining.
Diversification Opportunities for GAMES OPERATORS and Perseus Mining
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between GAMES and Perseus is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding GAMES OPERATORS SA and Perseus Mining Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Perseus Mining and GAMES OPERATORS 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 GAMES OPERATORS SA 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 GAMES OPERATORS i.e., GAMES OPERATORS and Perseus Mining go up and down completely randomly.
Pair Corralation between GAMES OPERATORS and Perseus Mining
Assuming the 90 days horizon GAMES OPERATORS SA is expected to generate 1.55 times more return on investment than Perseus Mining. However, GAMES OPERATORS is 1.55 times more volatile than Perseus Mining Limited. It trades about 0.04 of its potential returns per unit of risk. Perseus Mining Limited is currently generating about 0.02 per unit of risk. If you would invest 209.00 in GAMES OPERATORS SA on October 11, 2024 and sell it today you would earn a total of 134.00 from holding GAMES OPERATORS SA or generate 64.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GAMES OPERATORS SA vs. Perseus Mining Limited
Performance |
| Timeline |
| GAMES OPERATORS SA |
| Perseus Mining |
GAMES OPERATORS and Perseus Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GAMES OPERATORS and Perseus Mining
The main advantage of trading using opposite GAMES OPERATORS and Perseus Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GAMES OPERATORS 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.| GAMES OPERATORS vs. Perseus Mining Limited | GAMES OPERATORS vs. MCEWEN MINING INC | GAMES OPERATORS vs. Comba Telecom Systems | GAMES OPERATORS vs. Jacquet Metal Service |
| Perseus Mining vs. TRADEDOUBLER AB SK | Perseus Mining vs. CARSALESCOM | Perseus Mining vs. De Grey Mining | Perseus Mining vs. CANON MARKETING JP |
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.
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