Correlation Between Canaf Investments and Perseus Mining
Can any of the company-specific risk be diversified away by investing in both Canaf Investments 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 Canaf Investments and Perseus Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canaf Investments and Perseus Mining, you can compare the effects of market volatilities on Canaf Investments 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 Canaf Investments with a short position of Perseus Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canaf Investments and Perseus Mining.
Diversification Opportunities for Canaf Investments and Perseus Mining
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Canaf and Perseus is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Canaf Investments and Perseus Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Perseus Mining and Canaf Investments 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 Canaf Investments 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 Canaf Investments i.e., Canaf Investments and Perseus Mining go up and down completely randomly.
Pair Corralation between Canaf Investments and Perseus Mining
Assuming the 90 days horizon Canaf Investments is expected to generate 1.13 times less return on investment than Perseus Mining. But when comparing it to its historical volatility, Canaf Investments is 1.0 times less risky than Perseus Mining. It trades about 0.11 of its potential returns per unit of risk. Perseus Mining is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 287.00 in Perseus Mining on January 16, 2025 and sell it today you would earn a total of 22.00 from holding Perseus Mining or generate 7.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Canaf Investments vs. Perseus Mining
Performance |
| Timeline |
| Canaf Investments |
| Perseus Mining |
Canaf Investments and Perseus Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canaf Investments and Perseus Mining
The main advantage of trading using opposite Canaf Investments and Perseus Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canaf Investments 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.| Canaf Investments vs. Pace Metals | Canaf Investments vs. Quorum Information Technologies | Canaf Investments vs. Empire Metals Corp | Canaf Investments vs. Dream Industrial Real |
| Perseus Mining vs. Serabi Gold PLC | Perseus Mining vs. Sulliden Minerals SA | Perseus Mining vs. Precipitate Gold Corp | Perseus Mining vs. Rackla Metals |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |