Correlation Between Perseus Mining and PREMIER FOODS
Can any of the company-specific risk be diversified away by investing in both Perseus Mining and PREMIER FOODS 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 PREMIER FOODS 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 PREMIER FOODS, you can compare the effects of market volatilities on Perseus Mining and PREMIER FOODS 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 PREMIER FOODS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Perseus Mining and PREMIER FOODS.
Diversification Opportunities for Perseus Mining and PREMIER FOODS
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Perseus and PREMIER is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Perseus Mining Limited and PREMIER FOODS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PREMIER FOODS 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 PREMIER FOODS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PREMIER FOODS has no effect on the direction of Perseus Mining i.e., Perseus Mining and PREMIER FOODS go up and down completely randomly.
Pair Corralation between Perseus Mining and PREMIER FOODS
Assuming the 90 days horizon Perseus Mining Limited is expected to generate 0.92 times more return on investment than PREMIER FOODS. However, Perseus Mining Limited is 1.09 times less risky than PREMIER FOODS. It trades about 0.33 of its potential returns per unit of risk. PREMIER FOODS is currently generating about -0.08 per unit of risk. If you would invest 152.00 in Perseus Mining Limited on October 26, 2024 and sell it today you would earn a total of 15.00 from holding Perseus Mining Limited or generate 9.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Perseus Mining Limited vs. PREMIER FOODS
Performance |
| Timeline |
| Perseus Mining |
| PREMIER FOODS |
Perseus Mining and PREMIER FOODS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Perseus Mining and PREMIER FOODS
The main advantage of trading using opposite Perseus Mining and PREMIER FOODS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Perseus Mining position performs unexpectedly, PREMIER FOODS 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 PREMIER FOODS will offset losses from the drop in PREMIER FOODS's long position.| Perseus Mining vs. Xenia Hotels Resorts | Perseus Mining vs. Meli Hotels International | Perseus Mining vs. INTERCONT HOTELS | Perseus Mining vs. Pebblebrook Hotel Trust |
| PREMIER FOODS vs. Lamar Advertising | PREMIER FOODS vs. Perseus Mining Limited | PREMIER FOODS vs. Forsys Metals Corp | PREMIER FOODS vs. ARDAGH METAL PACDL 0001 |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |