Correlation Between Perseus Mining and SCANSOURCE
Can any of the company-specific risk be diversified away by investing in both Perseus Mining and SCANSOURCE 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 SCANSOURCE 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 SCANSOURCE, you can compare the effects of market volatilities on Perseus Mining and SCANSOURCE 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 SCANSOURCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Perseus Mining and SCANSOURCE.
Diversification Opportunities for Perseus Mining and SCANSOURCE
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Perseus and SCANSOURCE is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Perseus Mining Limited and SCANSOURCE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SCANSOURCE 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 SCANSOURCE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SCANSOURCE has no effect on the direction of Perseus Mining i.e., Perseus Mining and SCANSOURCE go up and down completely randomly.
Pair Corralation between Perseus Mining and SCANSOURCE
Assuming the 90 days horizon Perseus Mining Limited is expected to under-perform the SCANSOURCE. But the stock apears to be less risky and, when comparing its historical volatility, Perseus Mining Limited is 1.25 times less risky than SCANSOURCE. The stock trades about -0.01 of its potential returns per unit of risk. The SCANSOURCE is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 4,180 in SCANSOURCE on October 26, 2024 and sell it today you would earn a total of 740.00 from holding SCANSOURCE or generate 17.7% 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. SCANSOURCE
Performance |
| Timeline |
| Perseus Mining |
| SCANSOURCE |
Perseus Mining and SCANSOURCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Perseus Mining and SCANSOURCE
The main advantage of trading using opposite Perseus Mining and SCANSOURCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Perseus Mining position performs unexpectedly, SCANSOURCE 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 SCANSOURCE will offset losses from the drop in SCANSOURCE's 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 |
| SCANSOURCE vs. PLAYMATES TOYS | SCANSOURCE vs. ePlay Digital | SCANSOURCE vs. Aristocrat Leisure Limited | SCANSOURCE vs. Perseus Mining Limited |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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