Correlation Between Perseus Mining and INSURANCE AUST
Can any of the company-specific risk be diversified away by investing in both Perseus Mining and INSURANCE AUST 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 INSURANCE AUST 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 INSURANCE AUST GRP, you can compare the effects of market volatilities on Perseus Mining and INSURANCE AUST 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 INSURANCE AUST. Check out your portfolio center. Please also check ongoing floating volatility patterns of Perseus Mining and INSURANCE AUST.
Diversification Opportunities for Perseus Mining and INSURANCE AUST
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Perseus and INSURANCE is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Perseus Mining Limited and INSURANCE AUST GRP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INSURANCE AUST GRP 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 INSURANCE AUST. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INSURANCE AUST GRP has no effect on the direction of Perseus Mining i.e., Perseus Mining and INSURANCE AUST go up and down completely randomly.
Pair Corralation between Perseus Mining and INSURANCE AUST
Assuming the 90 days horizon Perseus Mining Limited is expected to under-perform the INSURANCE AUST. In addition to that, Perseus Mining is 1.28 times more volatile than INSURANCE AUST GRP. It trades about -0.11 of its total potential returns per unit of risk. INSURANCE AUST GRP is currently generating about 0.44 per unit of volatility. If you would invest 436.00 in INSURANCE AUST GRP on September 4, 2024 and sell it today you would earn a total of 79.00 from holding INSURANCE AUST GRP or generate 18.12% 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. INSURANCE AUST GRP
Performance |
| Timeline |
| Perseus Mining |
| INSURANCE AUST GRP |
Perseus Mining and INSURANCE AUST Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Perseus Mining and INSURANCE AUST
The main advantage of trading using opposite Perseus Mining and INSURANCE AUST positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Perseus Mining position performs unexpectedly, INSURANCE AUST 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 INSURANCE AUST will offset losses from the drop in INSURANCE AUST's long position.| Perseus Mining vs. ZIJIN MINH UNSPADR20 | Perseus Mining vs. Barrick Gold | Perseus Mining vs. Superior Plus Corp | Perseus Mining vs. NMI Holdings |
| INSURANCE AUST vs. Strategic Investments AS | INSURANCE AUST vs. American Eagle Outfitters | INSURANCE AUST vs. Virtus Investment Partners | INSURANCE AUST vs. Aegean Airlines SA |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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