Correlation Between EVN AG and Perseus Mining
Can any of the company-specific risk be diversified away by investing in both EVN AG 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 EVN AG and Perseus Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EVN AG and Perseus Mining Limited, you can compare the effects of market volatilities on EVN AG 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 EVN AG with a short position of Perseus Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of EVN AG and Perseus Mining.
Diversification Opportunities for EVN AG and Perseus Mining
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between EVN and Perseus is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding EVN AG and Perseus Mining Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Perseus Mining and EVN AG 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 EVN AG 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 EVN AG i.e., EVN AG and Perseus Mining go up and down completely randomly.
Pair Corralation between EVN AG and Perseus Mining
Assuming the 90 days horizon EVN AG is expected to under-perform the Perseus Mining. But the stock apears to be less risky and, when comparing its historical volatility, EVN AG is 1.81 times less risky than Perseus Mining. The stock trades about -0.01 of its potential returns per unit of risk. The Perseus Mining Limited is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 116.00 in Perseus Mining Limited on December 4, 2024 and sell it today you would earn a total of 57.00 from holding Perseus Mining Limited or generate 49.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
EVN AG vs. Perseus Mining Limited
Performance |
| Timeline |
| EVN AG |
| Perseus Mining |
EVN AG and Perseus Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EVN AG and Perseus Mining
The main advantage of trading using opposite EVN AG and Perseus Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EVN AG 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.| EVN AG vs. International Consolidated Airlines | EVN AG vs. Singapore Airlines Limited | EVN AG vs. China Southern Airlines | EVN AG vs. Aegean Airlines SA |
| Perseus Mining vs. INTER CARS SA | Perseus Mining vs. Guangdong Investment Limited | Perseus Mining vs. Apollo Investment Corp | Perseus Mining vs. Gladstone Investment |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |