Correlation Between Global X and Perseus Mining
Can any of the company-specific risk be diversified away by investing in both Global X 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 Global X and Perseus Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global X Active and Perseus Mining, you can compare the effects of market volatilities on Global X 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 Global X with a short position of Perseus Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global X and Perseus Mining.
Diversification Opportunities for Global X and Perseus Mining
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Global and Perseus is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Global X Active and Perseus Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Perseus Mining and Global X 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 Global X Active 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 Global X i.e., Global X and Perseus Mining go up and down completely randomly.
Pair Corralation between Global X and Perseus Mining
Assuming the 90 days trading horizon Global X is expected to generate 1.73 times less return on investment than Perseus Mining. But when comparing it to its historical volatility, Global X Active is 4.2 times less risky than Perseus Mining. It trades about 0.06 of its potential returns per unit of risk. Perseus Mining is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 204.00 in Perseus Mining on August 31, 2024 and sell it today you would earn a total of 33.00 from holding Perseus Mining or generate 16.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global X Active vs. Perseus Mining
Performance |
| Timeline |
| Global X Active |
| Perseus Mining |
Global X and Perseus Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global X and Perseus Mining
The main advantage of trading using opposite Global X and Perseus Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global X 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.| Global X vs. Global X Active | Global X vs. BMO Covered Call | Global X vs. Forstrong Global Income | Global X vs. BMO Aggregate Bond |
| Perseus Mining vs. Solar Alliance Energy | Perseus Mining vs. Global X Active | Perseus Mining vs. Financial 15 Split | Perseus Mining vs. Rubicon Organics |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |