Correlation Between Alternative Investment and Perseus Mining
Can any of the company-specific risk be diversified away by investing in both Alternative Investment 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 Alternative Investment and Perseus Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alternative Investment Trust and Perseus Mining, you can compare the effects of market volatilities on Alternative Investment 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 Alternative Investment with a short position of Perseus Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alternative Investment and Perseus Mining.
Diversification Opportunities for Alternative Investment and Perseus Mining
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Alternative and Perseus is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Alternative Investment Trust and Perseus Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Perseus Mining and Alternative Investment 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 Alternative Investment Trust 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 Alternative Investment i.e., Alternative Investment and Perseus Mining go up and down completely randomly.
Pair Corralation between Alternative Investment and Perseus Mining
Assuming the 90 days trading horizon Alternative Investment Trust is expected to generate 0.34 times more return on investment than Perseus Mining. However, Alternative Investment Trust is 2.91 times less risky than Perseus Mining. It trades about 0.21 of its potential returns per unit of risk. Perseus Mining is currently generating about -0.17 per unit of risk. If you would invest 140.00 in Alternative Investment Trust on August 25, 2024 and sell it today you would earn a total of 5.00 from holding Alternative Investment Trust or generate 3.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Alternative Investment Trust vs. Perseus Mining
Performance |
| Timeline |
| Alternative Investment |
| Perseus Mining |
Alternative Investment and Perseus Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alternative Investment and Perseus Mining
The main advantage of trading using opposite Alternative Investment and Perseus Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alternative Investment 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.| Alternative Investment vs. National Australia Bank | Alternative Investment vs. National Australia Bank | Alternative Investment vs. Westpac Banking | Alternative Investment vs. National Australia Bank |
| Perseus Mining vs. Platinum Asia Investments | Perseus Mining vs. Collins Foods | Perseus Mining vs. Hudson Investment Group | Perseus Mining vs. Alternative Investment Trust |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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