Correlation Between Perseus Mining and EVN AG
Can any of the company-specific risk be diversified away by investing in both Perseus Mining and EVN AG 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 EVN AG 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 EVN AG, you can compare the effects of market volatilities on Perseus Mining and EVN AG 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 EVN AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Perseus Mining and EVN AG.
Diversification Opportunities for Perseus Mining and EVN AG
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Perseus and EVN is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Perseus Mining Limited and EVN AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EVN AG 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 EVN AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EVN AG has no effect on the direction of Perseus Mining i.e., Perseus Mining and EVN AG go up and down completely randomly.
Pair Corralation between Perseus Mining and EVN AG
Assuming the 90 days horizon Perseus Mining Limited is expected to generate 1.52 times more return on investment than EVN AG. However, Perseus Mining is 1.52 times more volatile than EVN AG. It trades about 0.18 of its potential returns per unit of risk. EVN AG is currently generating about -0.08 per unit of risk. If you would invest 153.00 in Perseus Mining Limited on September 14, 2024 and sell it today you would earn a total of 14.00 from holding Perseus Mining Limited or generate 9.15% 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. EVN AG
Performance |
| Timeline |
| Perseus Mining |
| EVN AG |
Perseus Mining and EVN AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Perseus Mining and EVN AG
The main advantage of trading using opposite Perseus Mining and EVN AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Perseus Mining position performs unexpectedly, EVN AG 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 EVN AG will offset losses from the drop in EVN AG's long position.| Perseus Mining vs. Franco Nevada | Perseus Mining vs. Superior Plus Corp | Perseus Mining vs. SIVERS SEMICONDUCTORS AB | Perseus Mining vs. Norsk Hydro ASA |
| EVN AG vs. SHIP HEALTHCARE HLDGINC | EVN AG vs. CARSALESCOM | EVN AG vs. Canon Marketing Japan | EVN AG vs. EPSILON HEALTHCARE LTD |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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