Correlation Between Perseus Mining and InterContinental
Can any of the company-specific risk be diversified away by investing in both Perseus Mining and InterContinental 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 InterContinental 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 InterContinental Hotels Group, you can compare the effects of market volatilities on Perseus Mining and InterContinental 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 InterContinental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Perseus Mining and InterContinental.
Diversification Opportunities for Perseus Mining and InterContinental
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Perseus and InterContinental is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Perseus Mining Limited and InterContinental Hotels Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on InterContinental Hotels 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 InterContinental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of InterContinental Hotels has no effect on the direction of Perseus Mining i.e., Perseus Mining and InterContinental go up and down completely randomly.
Pair Corralation between Perseus Mining and InterContinental
Assuming the 90 days horizon Perseus Mining is expected to generate 1.12 times less return on investment than InterContinental. In addition to that, Perseus Mining is 1.25 times more volatile than InterContinental Hotels Group. It trades about 0.15 of its total potential returns per unit of risk. InterContinental Hotels Group is currently generating about 0.22 per unit of volatility. If you would invest 12,100 in InterContinental Hotels Group on November 2, 2024 and sell it today you would earn a total of 700.00 from holding InterContinental Hotels Group or generate 5.79% 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. InterContinental Hotels Group
Performance |
| Timeline |
| Perseus Mining |
| InterContinental Hotels |
Perseus Mining and InterContinental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Perseus Mining and InterContinental
The main advantage of trading using opposite Perseus Mining and InterContinental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Perseus Mining position performs unexpectedly, InterContinental 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 InterContinental will offset losses from the drop in InterContinental's long position.| Perseus Mining vs. EPSILON HEALTHCARE LTD | Perseus Mining vs. Universal Health Realty | Perseus Mining vs. OPKO HEALTH | Perseus Mining vs. BOSTON BEER A |
| InterContinental vs. Gaztransport Technigaz SA | InterContinental vs. Align Technology | InterContinental vs. MACOM Technology Solutions | InterContinental vs. Cognizant Technology Solutions |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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