Correlation Between GE Vernova and Perseus Mining
Can any of the company-specific risk be diversified away by investing in both GE Vernova 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 GE Vernova and Perseus Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GE Vernova LLC and Perseus Mining Limited, you can compare the effects of market volatilities on GE Vernova 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 GE Vernova with a short position of Perseus Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of GE Vernova and Perseus Mining.
Diversification Opportunities for GE Vernova and Perseus Mining
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between GEV and Perseus is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding GE Vernova LLC and Perseus Mining Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Perseus Mining and GE Vernova 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 GE Vernova LLC 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 GE Vernova i.e., GE Vernova and Perseus Mining go up and down completely randomly.
Pair Corralation between GE Vernova and Perseus Mining
Considering the 90-day investment horizon GE Vernova LLC is expected to generate 0.79 times more return on investment than Perseus Mining. However, GE Vernova LLC is 1.26 times less risky than Perseus Mining. It trades about 0.3 of its potential returns per unit of risk. Perseus Mining Limited is currently generating about -0.06 per unit of risk. If you would invest 28,923 in GE Vernova LLC on August 27, 2024 and sell it today you would earn a total of 5,993 from holding GE Vernova LLC or generate 20.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GE Vernova LLC vs. Perseus Mining Limited
Performance |
| Timeline |
| GE Vernova LLC |
| Perseus Mining |
GE Vernova and Perseus Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GE Vernova and Perseus Mining
The main advantage of trading using opposite GE Vernova and Perseus Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GE Vernova 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.| GE Vernova vs. Kaltura | GE Vernova vs. Paiute Oil Mining | GE Vernova vs. FiscalNote Holdings | GE Vernova vs. Perseus Mining Limited |
| Perseus Mining vs. Aurion Resources | Perseus Mining vs. Liberty Gold Corp | Perseus Mining vs. Orezone Gold Corp | Perseus Mining vs. Radisson Mining Resources |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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