Correlation Between Perseus Mining and New Work
Can any of the company-specific risk be diversified away by investing in both Perseus Mining and New Work 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 New Work 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 New Work SE, you can compare the effects of market volatilities on Perseus Mining and New Work 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 New Work. Check out your portfolio center. Please also check ongoing floating volatility patterns of Perseus Mining and New Work.
Diversification Opportunities for Perseus Mining and New Work
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Perseus and New is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Perseus Mining Limited and New Work SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New Work SE 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 New Work. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New Work SE has no effect on the direction of Perseus Mining i.e., Perseus Mining and New Work go up and down completely randomly.
Pair Corralation between Perseus Mining and New Work
Assuming the 90 days horizon Perseus Mining Limited is expected to under-perform the New Work. In addition to that, Perseus Mining is 2.82 times more volatile than New Work SE. It trades about -0.24 of its total potential returns per unit of risk. New Work SE is currently generating about 0.11 per unit of volatility. If you would invest 6,700 in New Work SE on October 12, 2024 and sell it today you would earn a total of 80.00 from holding New Work SE or generate 1.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 94.44% |
| Values | Daily Returns |
Perseus Mining Limited vs. New Work SE
Performance |
| Timeline |
| Perseus Mining |
| New Work SE |
Perseus Mining and New Work Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Perseus Mining and New Work
The main advantage of trading using opposite Perseus Mining and New Work positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Perseus Mining position performs unexpectedly, New Work 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 New Work will offset losses from the drop in New Work's long position.| Perseus Mining vs. Austevoll Seafood ASA | Perseus Mining vs. CANON MARKETING JP | Perseus Mining vs. PREMIER FOODS | Perseus Mining vs. Tradegate AG Wertpapierhandelsbank |
| New Work vs. ARDAGH METAL PACDL 0001 | New Work vs. Richardson Electronics | New Work vs. Perseus Mining Limited | New Work vs. Delta Electronics Public |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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