Correlation Between Perseus Mining and STORE ELECTRONIC
Can any of the company-specific risk be diversified away by investing in both Perseus Mining and STORE ELECTRONIC 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 STORE ELECTRONIC 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 STORE ELECTRONIC, you can compare the effects of market volatilities on Perseus Mining and STORE ELECTRONIC 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 STORE ELECTRONIC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Perseus Mining and STORE ELECTRONIC.
Diversification Opportunities for Perseus Mining and STORE ELECTRONIC
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Perseus and STORE is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Perseus Mining Limited and STORE ELECTRONIC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STORE ELECTRONIC 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 STORE ELECTRONIC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STORE ELECTRONIC has no effect on the direction of Perseus Mining i.e., Perseus Mining and STORE ELECTRONIC go up and down completely randomly.
Pair Corralation between Perseus Mining and STORE ELECTRONIC
Assuming the 90 days horizon Perseus Mining is expected to generate 3.1 times less return on investment than STORE ELECTRONIC. But when comparing it to its historical volatility, Perseus Mining Limited is 2.11 times less risky than STORE ELECTRONIC. It trades about 0.12 of its potential returns per unit of risk. STORE ELECTRONIC is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 15,020 in STORE ELECTRONIC on October 20, 2024 and sell it today you would earn a total of 1,470 from holding STORE ELECTRONIC or generate 9.79% 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. STORE ELECTRONIC
Performance |
| Timeline |
| Perseus Mining |
| STORE ELECTRONIC |
Perseus Mining and STORE ELECTRONIC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Perseus Mining and STORE ELECTRONIC
The main advantage of trading using opposite Perseus Mining and STORE ELECTRONIC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Perseus Mining position performs unexpectedly, STORE ELECTRONIC 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 STORE ELECTRONIC will offset losses from the drop in STORE ELECTRONIC's long position.| Perseus Mining vs. Webster Financial | Perseus Mining vs. PNC Financial Services | Perseus Mining vs. GRUPO CARSO A1 | Perseus Mining vs. Direct Line Insurance |
| STORE ELECTRONIC vs. CSSC Offshore Marine | STORE ELECTRONIC vs. X FAB Silicon Foundries | STORE ELECTRONIC vs. VIVA WINE GROUP | STORE ELECTRONIC vs. SMA Solar Technology |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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