Correlation Between Perseus Mining and CHINA TONTINE
Can any of the company-specific risk be diversified away by investing in both Perseus Mining and CHINA TONTINE 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 CHINA TONTINE 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 CHINA TONTINE WINES, you can compare the effects of market volatilities on Perseus Mining and CHINA TONTINE 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 CHINA TONTINE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Perseus Mining and CHINA TONTINE.
Diversification Opportunities for Perseus Mining and CHINA TONTINE
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Perseus and CHINA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Perseus Mining Limited and CHINA TONTINE WINES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHINA TONTINE WINES 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 CHINA TONTINE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHINA TONTINE WINES has no effect on the direction of Perseus Mining i.e., Perseus Mining and CHINA TONTINE go up and down completely randomly.
Pair Corralation between Perseus Mining and CHINA TONTINE
If you would invest 155.00 in Perseus Mining Limited on September 12, 2024 and sell it today you would earn a total of 15.00 from holding Perseus Mining Limited or generate 9.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Perseus Mining Limited vs. CHINA TONTINE WINES
Performance |
| Timeline |
| Perseus Mining |
| CHINA TONTINE WINES |
Perseus Mining and CHINA TONTINE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Perseus Mining and CHINA TONTINE
The main advantage of trading using opposite Perseus Mining and CHINA TONTINE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Perseus Mining position performs unexpectedly, CHINA TONTINE 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 CHINA TONTINE will offset losses from the drop in CHINA TONTINE's long position.| Perseus Mining vs. Vastned Retail NV | Perseus Mining vs. MARKET VECTR RETAIL | Perseus Mining vs. Carsales | Perseus Mining vs. QURATE RETAIL INC |
| CHINA TONTINE vs. NAKED WINES PLC | CHINA TONTINE vs. Superior Plus Corp | CHINA TONTINE vs. SIVERS SEMICONDUCTORS AB | CHINA TONTINE vs. CHINA HUARONG ENERHD 50 |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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