Correlation Between Perseus Mining and NextEra Energy
Can any of the company-specific risk be diversified away by investing in both Perseus Mining and NextEra Energy 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 NextEra Energy 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 NextEra Energy, you can compare the effects of market volatilities on Perseus Mining and NextEra Energy 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 NextEra Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Perseus Mining and NextEra Energy.
Diversification Opportunities for Perseus Mining and NextEra Energy
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Perseus and NextEra is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Perseus Mining Limited and NextEra Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NextEra Energy 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 NextEra Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NextEra Energy has no effect on the direction of Perseus Mining i.e., Perseus Mining and NextEra Energy go up and down completely randomly.
Pair Corralation between Perseus Mining and NextEra Energy
Assuming the 90 days horizon Perseus Mining Limited is expected to generate 1.67 times more return on investment than NextEra Energy. However, Perseus Mining is 1.67 times more volatile than NextEra Energy. It trades about 0.03 of its potential returns per unit of risk. NextEra Energy is currently generating about 0.0 per unit of risk. If you would invest 127.00 in Perseus Mining Limited on September 5, 2024 and sell it today you would earn a total of 31.00 from holding Perseus Mining Limited or generate 24.41% 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. NextEra Energy
Performance |
| Timeline |
| Perseus Mining |
| NextEra Energy |
Perseus Mining and NextEra Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Perseus Mining and NextEra Energy
The main advantage of trading using opposite Perseus Mining and NextEra Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Perseus Mining position performs unexpectedly, NextEra Energy 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 NextEra Energy will offset losses from the drop in NextEra Energy's long position.| Perseus Mining vs. Superior Plus Corp | Perseus Mining vs. NMI Holdings | Perseus Mining vs. Origin Agritech | Perseus Mining vs. SIVERS SEMICONDUCTORS AB |
| NextEra Energy vs. Perseus Mining Limited | NextEra Energy vs. Harmony Gold Mining | NextEra Energy vs. SHIP HEALTHCARE HLDGINC | NextEra Energy vs. Jacquet Metal Service |
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.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |