Correlation Between Black Spade and Perseus Mining
Can any of the company-specific risk be diversified away by investing in both Black Spade 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 Black Spade and Perseus Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Black Spade Acquisition and Perseus Mining Limited, you can compare the effects of market volatilities on Black Spade 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 Black Spade with a short position of Perseus Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Black Spade and Perseus Mining.
Diversification Opportunities for Black Spade and Perseus Mining
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Black and Perseus is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Black Spade Acquisition and Perseus Mining Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Perseus Mining and Black Spade 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 Black Spade Acquisition 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 Black Spade i.e., Black Spade and Perseus Mining go up and down completely randomly.
Pair Corralation between Black Spade and Perseus Mining
Assuming the 90 days horizon Black Spade is expected to generate 23.7 times less return on investment than Perseus Mining. But when comparing it to its historical volatility, Black Spade Acquisition is 11.99 times less risky than Perseus Mining. It trades about 0.04 of its potential returns per unit of risk. Perseus Mining Limited is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 109.00 in Perseus Mining Limited on December 11, 2024 and sell it today you would earn a total of 77.00 from holding Perseus Mining Limited or generate 70.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 52.59% |
| Values | Daily Returns |
Black Spade Acquisition vs. Perseus Mining Limited
Performance |
| Timeline |
| Black Spade Acquisition |
| Perseus Mining |
Black Spade and Perseus Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Black Spade and Perseus Mining
The main advantage of trading using opposite Black Spade and Perseus Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Black Spade 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.| Black Spade vs. Tianjin Capital Environmental | ||
| Black Spade vs. MOGU Inc | ||
| Black Spade vs. Titan Machinery | ||
| Black Spade vs. Simon Property Group |
| Perseus Mining vs. Aurion Resources | ||
| Perseus Mining vs. Liberty Gold Corp | ||
| Perseus Mining vs. Rio2 Limited | ||
| Perseus Mining vs. Orezone Gold Corp |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |