Correlation Between Perseus Mining and Canon Marketing
Can any of the company-specific risk be diversified away by investing in both Perseus Mining and Canon Marketing 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 Canon Marketing 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 Canon Marketing Japan, you can compare the effects of market volatilities on Perseus Mining and Canon Marketing 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 Canon Marketing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Perseus Mining and Canon Marketing.
Diversification Opportunities for Perseus Mining and Canon Marketing
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Perseus and Canon is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Perseus Mining Limited and Canon Marketing Japan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canon Marketing Japan 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 Canon Marketing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canon Marketing Japan has no effect on the direction of Perseus Mining i.e., Perseus Mining and Canon Marketing go up and down completely randomly.
Pair Corralation between Perseus Mining and Canon Marketing
Assuming the 90 days horizon Perseus Mining Limited is expected to generate 2.08 times more return on investment than Canon Marketing. However, Perseus Mining is 2.08 times more volatile than Canon Marketing Japan. It trades about 0.08 of its potential returns per unit of risk. Canon Marketing Japan is currently generating about 0.17 per unit of risk. If you would invest 162.00 in Perseus Mining Limited on November 29, 2024 and sell it today you would earn a total of 7.00 from holding Perseus Mining Limited or generate 4.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Perseus Mining Limited vs. Canon Marketing Japan
Performance |
| Timeline |
| Perseus Mining |
| Canon Marketing Japan |
Perseus Mining and Canon Marketing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Perseus Mining and Canon Marketing
The main advantage of trading using opposite Perseus Mining and Canon Marketing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Perseus Mining position performs unexpectedly, Canon Marketing 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 Canon Marketing will offset losses from the drop in Canon Marketing's long position.| Perseus Mining vs. ALEFARM BREWING DK 05 | Perseus Mining vs. MCEWEN MINING INC | Perseus Mining vs. DISTRICT METALS | Perseus Mining vs. AUST AGRICULTURAL |
| Canon Marketing vs. Tower Semiconductor | Canon Marketing vs. Hua Hong Semiconductor | Canon Marketing vs. CHRYSALIS INVESTMENTS LTD | Canon Marketing vs. HK Electric Investments |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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