Correlation Between Perseus Mining and Hoist Finance
Can any of the company-specific risk be diversified away by investing in both Perseus Mining and Hoist Finance 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 Hoist Finance 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 Hoist Finance AB, you can compare the effects of market volatilities on Perseus Mining and Hoist Finance 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 Hoist Finance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Perseus Mining and Hoist Finance.
Diversification Opportunities for Perseus Mining and Hoist Finance
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Perseus and Hoist is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Perseus Mining Limited and Hoist Finance AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hoist Finance AB 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 Hoist Finance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hoist Finance AB has no effect on the direction of Perseus Mining i.e., Perseus Mining and Hoist Finance go up and down completely randomly.
Pair Corralation between Perseus Mining and Hoist Finance
Assuming the 90 days horizon Perseus Mining Limited is expected to generate 0.66 times more return on investment than Hoist Finance. However, Perseus Mining Limited is 1.53 times less risky than Hoist Finance. It trades about 0.31 of its potential returns per unit of risk. Hoist Finance AB is currently generating about -0.01 per unit of risk. If you would invest 155.00 in Perseus Mining Limited on November 7, 2024 and sell it today you would earn a total of 21.00 from holding Perseus Mining Limited or generate 13.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Perseus Mining Limited vs. Hoist Finance AB
Performance |
| Timeline |
| Perseus Mining |
| Hoist Finance AB |
Perseus Mining and Hoist Finance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Perseus Mining and Hoist Finance
The main advantage of trading using opposite Perseus Mining and Hoist Finance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Perseus Mining position performs unexpectedly, Hoist Finance 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 Hoist Finance will offset losses from the drop in Hoist Finance's long position.| Perseus Mining vs. ZIJIN MINH UNSPADR20 | Perseus Mining vs. Newmont | Perseus Mining vs. Barrick Gold | Perseus Mining vs. Franco Nevada |
| Hoist Finance vs. Tower One Wireless | Hoist Finance vs. CITY OFFICE REIT | Hoist Finance vs. Ringmetall SE | Hoist Finance vs. GALENA MINING LTD |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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