Correlation Between Perseus Mining and SERI INDUSTRIAL
Can any of the company-specific risk be diversified away by investing in both Perseus Mining and SERI INDUSTRIAL 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 SERI INDUSTRIAL 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 SERI INDUSTRIAL EO, you can compare the effects of market volatilities on Perseus Mining and SERI INDUSTRIAL 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 SERI INDUSTRIAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Perseus Mining and SERI INDUSTRIAL.
Diversification Opportunities for Perseus Mining and SERI INDUSTRIAL
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Perseus and SERI is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Perseus Mining Limited and SERI INDUSTRIAL EO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SERI INDUSTRIAL EO 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 SERI INDUSTRIAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SERI INDUSTRIAL EO has no effect on the direction of Perseus Mining i.e., Perseus Mining and SERI INDUSTRIAL go up and down completely randomly.
Pair Corralation between Perseus Mining and SERI INDUSTRIAL
Assuming the 90 days horizon Perseus Mining Limited is expected to generate 0.49 times more return on investment than SERI INDUSTRIAL. However, Perseus Mining Limited is 2.06 times less risky than SERI INDUSTRIAL. It trades about 0.33 of its potential returns per unit of risk. SERI INDUSTRIAL EO is currently generating about 0.05 per unit of risk. If you would invest 152.00 in Perseus Mining Limited on October 25, 2024 and sell it today you would earn a total of 15.00 from holding Perseus Mining Limited or generate 9.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 94.44% |
| Values | Daily Returns |
Perseus Mining Limited vs. SERI INDUSTRIAL EO
Performance |
| Timeline |
| Perseus Mining |
| SERI INDUSTRIAL EO |
Perseus Mining and SERI INDUSTRIAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Perseus Mining and SERI INDUSTRIAL
The main advantage of trading using opposite Perseus Mining and SERI INDUSTRIAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Perseus Mining position performs unexpectedly, SERI INDUSTRIAL 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 SERI INDUSTRIAL will offset losses from the drop in SERI INDUSTRIAL's long position.| Perseus Mining vs. Laureate Education | Perseus Mining vs. Xinhua Winshare Publishing | Perseus Mining vs. Perdoceo Education | Perseus Mining vs. STRAYER EDUCATION |
| SERI INDUSTRIAL vs. Granite Construction | SERI INDUSTRIAL vs. Tokyu Construction Co | SERI INDUSTRIAL vs. Northern Data AG | SERI INDUSTRIAL vs. CN DATANG C |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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