Correlation Between CI GAMES and Perseus Mining
Can any of the company-specific risk be diversified away by investing in both CI GAMES 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 CI GAMES and Perseus Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CI GAMES SA and Perseus Mining Limited, you can compare the effects of market volatilities on CI GAMES 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 CI GAMES with a short position of Perseus Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of CI GAMES and Perseus Mining.
Diversification Opportunities for CI GAMES and Perseus Mining
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CI7 and Perseus is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding CI GAMES 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 CI GAMES 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 CI GAMES 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 CI GAMES i.e., CI GAMES and Perseus Mining go up and down completely randomly.
Pair Corralation between CI GAMES and Perseus Mining
Assuming the 90 days horizon CI GAMES SA is expected to under-perform the Perseus Mining. In addition to that, CI GAMES is 1.53 times more volatile than Perseus Mining Limited. It trades about -0.11 of its total potential returns per unit of risk. Perseus Mining Limited is currently generating about 0.2 per unit of volatility. If you would invest 152.00 in Perseus Mining Limited on September 13, 2024 and sell it today you would earn a total of 15.00 from holding Perseus Mining Limited or generate 9.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CI GAMES SA vs. Perseus Mining Limited
Performance |
| Timeline |
| CI GAMES SA |
| Perseus Mining |
CI GAMES and Perseus Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CI GAMES and Perseus Mining
The main advantage of trading using opposite CI GAMES and Perseus Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CI GAMES 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.| CI GAMES vs. NEXON Co | CI GAMES vs. Take Two Interactive Software | CI GAMES vs. Superior Plus Corp | CI GAMES vs. SIVERS SEMICONDUCTORS AB |
| Perseus Mining vs. Franco Nevada | Perseus Mining vs. Superior Plus Corp | Perseus Mining vs. SIVERS SEMICONDUCTORS AB | Perseus Mining vs. Norsk Hydro ASA |
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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