Correlation Between Perseus Mining and GAMES OPERATORS
Can any of the company-specific risk be diversified away by investing in both Perseus Mining and GAMES OPERATORS 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 GAMES OPERATORS 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 GAMES OPERATORS SA, you can compare the effects of market volatilities on Perseus Mining and GAMES OPERATORS 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 GAMES OPERATORS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Perseus Mining and GAMES OPERATORS.
Diversification Opportunities for Perseus Mining and GAMES OPERATORS
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Perseus and GAMES is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Perseus Mining Limited and GAMES OPERATORS SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GAMES OPERATORS SA 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 GAMES OPERATORS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GAMES OPERATORS SA has no effect on the direction of Perseus Mining i.e., Perseus Mining and GAMES OPERATORS go up and down completely randomly.
Pair Corralation between Perseus Mining and GAMES OPERATORS
Assuming the 90 days horizon Perseus Mining is expected to generate 2.91 times less return on investment than GAMES OPERATORS. But when comparing it to its historical volatility, Perseus Mining Limited is 1.55 times less risky than GAMES OPERATORS. It trades about 0.02 of its potential returns per unit of risk. GAMES OPERATORS SA is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 209.00 in GAMES OPERATORS SA on October 11, 2024 and sell it today you would earn a total of 134.00 from holding GAMES OPERATORS SA or generate 64.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Perseus Mining Limited vs. GAMES OPERATORS SA
Performance |
| Timeline |
| Perseus Mining |
| GAMES OPERATORS SA |
Perseus Mining and GAMES OPERATORS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Perseus Mining and GAMES OPERATORS
The main advantage of trading using opposite Perseus Mining and GAMES OPERATORS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Perseus Mining position performs unexpectedly, GAMES OPERATORS 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 GAMES OPERATORS will offset losses from the drop in GAMES OPERATORS's long position.| Perseus Mining vs. TRADEDOUBLER AB SK | Perseus Mining vs. CARSALESCOM | Perseus Mining vs. De Grey Mining | Perseus Mining vs. CANON MARKETING JP |
| GAMES OPERATORS vs. Perseus Mining Limited | GAMES OPERATORS vs. MCEWEN MINING INC | GAMES OPERATORS vs. Comba Telecom Systems | GAMES OPERATORS vs. Jacquet Metal Service |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Commodity Directory Find actively traded commodities issued by global exchanges |