Correlation Between Perseus Mining and KENNAMETAL INC
Can any of the company-specific risk be diversified away by investing in both Perseus Mining and KENNAMETAL INC 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 KENNAMETAL INC 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 KENNAMETAL INC, you can compare the effects of market volatilities on Perseus Mining and KENNAMETAL INC 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 KENNAMETAL INC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Perseus Mining and KENNAMETAL INC.
Diversification Opportunities for Perseus Mining and KENNAMETAL INC
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Perseus and KENNAMETAL is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Perseus Mining Limited and KENNAMETAL INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KENNAMETAL INC 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 KENNAMETAL INC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KENNAMETAL INC has no effect on the direction of Perseus Mining i.e., Perseus Mining and KENNAMETAL INC go up and down completely randomly.
Pair Corralation between Perseus Mining and KENNAMETAL INC
Assuming the 90 days horizon Perseus Mining Limited is expected to generate 1.4 times more return on investment than KENNAMETAL INC. However, Perseus Mining is 1.4 times more volatile than KENNAMETAL INC. It trades about 0.09 of its potential returns per unit of risk. KENNAMETAL INC is currently generating about -0.26 per unit of risk. If you would invest 163.00 in Perseus Mining Limited on November 18, 2024 and sell it today you would earn a total of 7.00 from holding Perseus Mining Limited or generate 4.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Perseus Mining Limited vs. KENNAMETAL INC
Performance |
| Timeline |
| Perseus Mining |
| KENNAMETAL INC |
Perseus Mining and KENNAMETAL INC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Perseus Mining and KENNAMETAL INC
The main advantage of trading using opposite Perseus Mining and KENNAMETAL INC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Perseus Mining position performs unexpectedly, KENNAMETAL INC 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 KENNAMETAL INC will offset losses from the drop in KENNAMETAL INC's long position.| Perseus Mining vs. Wyndham Hotels Resorts | Perseus Mining vs. MELIA HOTELS | Perseus Mining vs. INTERCONT HOTELS | Perseus Mining vs. Xenia Hotels Resorts |
| KENNAMETAL INC vs. Apple Inc | KENNAMETAL INC vs. Apple Inc | KENNAMETAL INC vs. Apple Inc | KENNAMETAL INC vs. Apple Inc |
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.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |