Correlation Between Perseus Mining and Brixmor Property
Can any of the company-specific risk be diversified away by investing in both Perseus Mining and Brixmor Property 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 Brixmor Property 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 Brixmor Property Group, you can compare the effects of market volatilities on Perseus Mining and Brixmor Property 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 Brixmor Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of Perseus Mining and Brixmor Property.
Diversification Opportunities for Perseus Mining and Brixmor Property
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Perseus and Brixmor is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Perseus Mining Limited and Brixmor Property Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brixmor Property 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 Brixmor Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brixmor Property has no effect on the direction of Perseus Mining i.e., Perseus Mining and Brixmor Property go up and down completely randomly.
Pair Corralation between Perseus Mining and Brixmor Property
Assuming the 90 days horizon Perseus Mining Limited is expected to generate 1.2 times more return on investment than Brixmor Property. However, Perseus Mining is 1.2 times more volatile than Brixmor Property Group. It trades about 0.12 of its potential returns per unit of risk. Brixmor Property Group is currently generating about -0.05 per unit of risk. If you would invest 158.00 in Perseus Mining Limited on October 20, 2024 and sell it today you would earn a total of 5.00 from holding Perseus Mining Limited or generate 3.16% 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. Brixmor Property Group
Performance |
| Timeline |
| Perseus Mining |
| Brixmor Property |
Perseus Mining and Brixmor Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Perseus Mining and Brixmor Property
The main advantage of trading using opposite Perseus Mining and Brixmor Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Perseus Mining position performs unexpectedly, Brixmor Property 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 Brixmor Property will offset losses from the drop in Brixmor Property's long position.| Perseus Mining vs. Webster Financial | Perseus Mining vs. PNC Financial Services | Perseus Mining vs. GRUPO CARSO A1 | Perseus Mining vs. Direct Line Insurance |
| Brixmor Property vs. Simon Property Group | Brixmor Property vs. Realty Income | Brixmor Property vs. Link Real Estate | Brixmor Property vs. Range Resources 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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