Correlation Between Perseus Mining and KIMBALL ELECTRONICS
Can any of the company-specific risk be diversified away by investing in both Perseus Mining and KIMBALL ELECTRONICS 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 Perseus Mining and KIMBALL ELECTRONICS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Perseus Mining Limited and KIMBALL ELECTRONICS, you can compare the effects of market volatilities on Perseus Mining and KIMBALL ELECTRONICS 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 Perseus Mining with a short position of KIMBALL ELECTRONICS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Perseus Mining and KIMBALL ELECTRONICS.
Diversification Opportunities for Perseus Mining and KIMBALL ELECTRONICS
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Perseus and KIMBALL is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Perseus Mining Limited and KIMBALL ELECTRONICS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KIMBALL ELECTRONICS and Perseus Mining 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 Perseus Mining Limited are associated (or correlated) with KIMBALL ELECTRONICS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KIMBALL ELECTRONICS has no effect on the direction of Perseus Mining i.e., Perseus Mining and KIMBALL ELECTRONICS go up and down completely randomly.
Pair Corralation between Perseus Mining and KIMBALL ELECTRONICS
Assuming the 90 days horizon Perseus Mining Limited is expected to generate 1.16 times more return on investment than KIMBALL ELECTRONICS. However, Perseus Mining is 1.16 times more volatile than KIMBALL ELECTRONICS. It trades about 0.19 of its potential returns per unit of risk. KIMBALL ELECTRONICS is currently generating about -0.08 per unit of risk. If you would invest 159.00 in Perseus Mining Limited on November 3, 2024 and sell it today you would earn a total of 11.00 from holding Perseus Mining Limited or generate 6.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Perseus Mining Limited vs. KIMBALL ELECTRONICS
Performance |
| Timeline |
| Perseus Mining |
| KIMBALL ELECTRONICS |
Perseus Mining and KIMBALL ELECTRONICS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Perseus Mining and KIMBALL ELECTRONICS
The main advantage of trading using opposite Perseus Mining and KIMBALL ELECTRONICS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Perseus Mining position performs unexpectedly, KIMBALL ELECTRONICS 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 KIMBALL ELECTRONICS will offset losses from the drop in KIMBALL ELECTRONICS's long position.| Perseus Mining vs. Sunny Optical Technology | Perseus Mining vs. KOBE STEEL LTD | Perseus Mining vs. TOMBADOR IRON LTD | Perseus Mining vs. Olympic Steel |
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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 Global Correlations module to find global opportunities by holding instruments from different markets.
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