Correlation Between Perseus Mining and Kirin Holdings
Can any of the company-specific risk be diversified away by investing in both Perseus Mining and Kirin Holdings 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 Kirin Holdings 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 Kirin Holdings, you can compare the effects of market volatilities on Perseus Mining and Kirin Holdings 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 Kirin Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Perseus Mining and Kirin Holdings.
Diversification Opportunities for Perseus Mining and Kirin Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Perseus and Kirin is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Perseus Mining Limited and Kirin Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kirin Holdings 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 Kirin Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kirin Holdings has no effect on the direction of Perseus Mining i.e., Perseus Mining and Kirin Holdings go up and down completely randomly.
Pair Corralation between Perseus Mining and Kirin Holdings
Assuming the 90 days horizon Perseus Mining Limited is expected to under-perform the Kirin Holdings. In addition to that, Perseus Mining is 1.52 times more volatile than Kirin Holdings. It trades about -0.08 of its total potential returns per unit of risk. Kirin Holdings is currently generating about -0.11 per unit of volatility. If you would invest 1,370 in Kirin Holdings on September 4, 2024 and sell it today you would lose (50.00) from holding Kirin Holdings or give up 3.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Perseus Mining Limited vs. Kirin Holdings
Performance |
| Timeline |
| Perseus Mining |
| Kirin Holdings |
Perseus Mining and Kirin Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Perseus Mining and Kirin Holdings
The main advantage of trading using opposite Perseus Mining and Kirin Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Perseus Mining position performs unexpectedly, Kirin Holdings 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 Kirin Holdings will offset losses from the drop in Kirin Holdings' long position.| Perseus Mining vs. ZIJIN MINH UNSPADR20 | Perseus Mining vs. Barrick Gold | Perseus Mining vs. Superior Plus Corp | Perseus Mining vs. NMI Holdings |
| Kirin Holdings vs. Heineken Holding NV | Kirin Holdings vs. Tsingtao Brewery | Kirin Holdings vs. Asahi Group Holdings |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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