Correlation Between MAS Gold and Perseus Mining
Can any of the company-specific risk be diversified away by investing in both MAS Gold 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 MAS Gold and Perseus Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MAS Gold Corp and Perseus Mining, you can compare the effects of market volatilities on MAS Gold 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 MAS Gold with a short position of Perseus Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of MAS Gold and Perseus Mining.
Diversification Opportunities for MAS Gold and Perseus Mining
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MAS and Perseus is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding MAS Gold Corp and Perseus Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Perseus Mining and MAS Gold 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 MAS Gold Corp 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 MAS Gold i.e., MAS Gold and Perseus Mining go up and down completely randomly.
Pair Corralation between MAS Gold and Perseus Mining
Assuming the 90 days horizon MAS Gold Corp is expected to generate 16.21 times more return on investment than Perseus Mining. However, MAS Gold is 16.21 times more volatile than Perseus Mining. It trades about 0.06 of its potential returns per unit of risk. Perseus Mining is currently generating about -0.07 per unit of risk. If you would invest 2.00 in MAS Gold Corp on September 26, 2024 and sell it today you would lose (1.00) from holding MAS Gold Corp or give up 50.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MAS Gold Corp vs. Perseus Mining
Performance |
| Timeline |
| MAS Gold Corp |
| Perseus Mining |
MAS Gold and Perseus Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MAS Gold and Perseus Mining
The main advantage of trading using opposite MAS Gold and Perseus Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MAS Gold 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.| MAS Gold vs. Wildsky Resources | MAS Gold vs. Q Gold Resources | MAS Gold vs. Plato Gold Corp | MAS Gold vs. Goldbank Mining Corp |
| Perseus Mining vs. Wildsky Resources | Perseus Mining vs. Q Gold Resources | Perseus Mining vs. Plato Gold Corp | Perseus Mining vs. MAS Gold Corp |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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