Correlation Between Perseus Mining and Jupiter Fund
Can any of the company-specific risk be diversified away by investing in both Perseus Mining and Jupiter Fund 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 Jupiter Fund 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 Jupiter Fund Management, you can compare the effects of market volatilities on Perseus Mining and Jupiter Fund 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 Jupiter Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Perseus Mining and Jupiter Fund.
Diversification Opportunities for Perseus Mining and Jupiter Fund
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Perseus and Jupiter is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Perseus Mining Limited and Jupiter Fund Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jupiter Fund Management 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 Jupiter Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jupiter Fund Management has no effect on the direction of Perseus Mining i.e., Perseus Mining and Jupiter Fund go up and down completely randomly.
Pair Corralation between Perseus Mining and Jupiter Fund
Assuming the 90 days horizon Perseus Mining Limited is expected to under-perform the Jupiter Fund. In addition to that, Perseus Mining is 1.74 times more volatile than Jupiter Fund Management. It trades about -0.11 of its total potential returns per unit of risk. Jupiter Fund Management is currently generating about 0.12 per unit of volatility. If you would invest 96.00 in Jupiter Fund Management on September 1, 2024 and sell it today you would earn a total of 3.00 from holding Jupiter Fund Management or generate 3.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Perseus Mining Limited vs. Jupiter Fund Management
Performance |
| Timeline |
| Perseus Mining |
| Jupiter Fund Management |
Perseus Mining and Jupiter Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Perseus Mining and Jupiter Fund
The main advantage of trading using opposite Perseus Mining and Jupiter Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Perseus Mining position performs unexpectedly, Jupiter Fund 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 Jupiter Fund will offset losses from the drop in Jupiter Fund's long position.| Perseus Mining vs. COSMOSTEEL HLDGS | Perseus Mining vs. NIPPON STEEL SPADR | Perseus Mining vs. Tianjin Capital Environmental | Perseus Mining vs. CECO ENVIRONMENTAL |
| Jupiter Fund vs. Harmony Gold Mining | Jupiter Fund vs. NH HOTEL GROUP | Jupiter Fund vs. ADRIATIC METALS LS 013355 | Jupiter Fund vs. Zijin Mining Group |
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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