Correlation Between Perseus Mining and Kellogg
Can any of the company-specific risk be diversified away by investing in both Perseus Mining and Kellogg 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 Kellogg 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 Kellogg Company, you can compare the effects of market volatilities on Perseus Mining and Kellogg 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 Kellogg. Check out your portfolio center. Please also check ongoing floating volatility patterns of Perseus Mining and Kellogg.
Diversification Opportunities for Perseus Mining and Kellogg
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Perseus and Kellogg is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Perseus Mining Limited and Kellogg Company in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kellogg Company 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 Kellogg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kellogg Company has no effect on the direction of Perseus Mining i.e., Perseus Mining and Kellogg go up and down completely randomly.
Pair Corralation between Perseus Mining and Kellogg
Assuming the 90 days horizon Perseus Mining Limited is expected to generate 1.91 times more return on investment than Kellogg. However, Perseus Mining is 1.91 times more volatile than Kellogg Company. It trades about 0.04 of its potential returns per unit of risk. Kellogg Company is currently generating about 0.05 per unit of risk. If you would invest 119.00 in Perseus Mining Limited on November 5, 2024 and sell it today you would earn a total of 50.00 from holding Perseus Mining Limited or generate 42.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Perseus Mining Limited vs. Kellogg Company
Performance |
| Timeline |
| Perseus Mining |
| Kellogg Company |
Perseus Mining and Kellogg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Perseus Mining and Kellogg
The main advantage of trading using opposite Perseus Mining and Kellogg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Perseus Mining position performs unexpectedly, Kellogg 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 Kellogg will offset losses from the drop in Kellogg's long position.| Perseus Mining vs. Safety Insurance Group | Perseus Mining vs. Cogent Communications Holdings | Perseus Mining vs. Goosehead Insurance | Perseus Mining vs. TELECOM ITALRISP ADR10 |
| Kellogg vs. ITALIAN WINE BRANDS | Kellogg vs. CHINA TONTINE WINES | Kellogg vs. MUTUIONLINE | Kellogg vs. SILICON LABORATOR |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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