Correlation Between Perseus Mining and Phillips
Can any of the company-specific risk be diversified away by investing in both Perseus Mining and Phillips 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 Phillips 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 Phillips 66, you can compare the effects of market volatilities on Perseus Mining and Phillips 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 Phillips. Check out your portfolio center. Please also check ongoing floating volatility patterns of Perseus Mining and Phillips.
Diversification Opportunities for Perseus Mining and Phillips
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Perseus and Phillips is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Perseus Mining Limited and Phillips 66 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phillips 66 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 Phillips. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Phillips 66 has no effect on the direction of Perseus Mining i.e., Perseus Mining and Phillips go up and down completely randomly.
Pair Corralation between Perseus Mining and Phillips
Assuming the 90 days horizon Perseus Mining Limited is expected to under-perform the Phillips. In addition to that, Perseus Mining is 1.0 times more volatile than Phillips 66. It trades about -0.01 of its total potential returns per unit of risk. Phillips 66 is currently generating about 0.01 per unit of volatility. If you would invest 11,691 in Phillips 66 on October 26, 2024 and sell it today you would earn a total of 31.00 from holding Phillips 66 or generate 0.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Perseus Mining Limited vs. Phillips 66
Performance |
| Timeline |
| Perseus Mining |
| Phillips 66 |
Perseus Mining and Phillips Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Perseus Mining and Phillips
The main advantage of trading using opposite Perseus Mining and Phillips positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Perseus Mining position performs unexpectedly, Phillips 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 Phillips will offset losses from the drop in Phillips' long position.| Perseus Mining vs. Xenia Hotels Resorts | Perseus Mining vs. Meli Hotels International | Perseus Mining vs. INTERCONT HOTELS | Perseus Mining vs. Pebblebrook Hotel Trust |
| Phillips vs. ADDUS HOMECARE | Phillips vs. CAIRN HOMES EO | Phillips vs. Lendlease Group | Phillips vs. bet at home AG |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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