Correlation Between Perseus Mining and TRADEGATE
Can any of the company-specific risk be diversified away by investing in both Perseus Mining and TRADEGATE 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 TRADEGATE 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 TRADEGATE, you can compare the effects of market volatilities on Perseus Mining and TRADEGATE 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 TRADEGATE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Perseus Mining and TRADEGATE.
Diversification Opportunities for Perseus Mining and TRADEGATE
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Perseus and TRADEGATE is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Perseus Mining Limited and TRADEGATE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TRADEGATE 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 TRADEGATE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TRADEGATE has no effect on the direction of Perseus Mining i.e., Perseus Mining and TRADEGATE go up and down completely randomly.
Pair Corralation between Perseus Mining and TRADEGATE
Assuming the 90 days horizon Perseus Mining Limited is expected to generate 6.39 times more return on investment than TRADEGATE. However, Perseus Mining is 6.39 times more volatile than TRADEGATE. It trades about 0.08 of its potential returns per unit of risk. TRADEGATE is currently generating about -0.12 per unit of risk. If you would invest 162.00 in Perseus Mining Limited on November 29, 2024 and sell it today you would earn a total of 7.00 from holding Perseus Mining Limited or generate 4.32% 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. TRADEGATE
Performance |
| Timeline |
| Perseus Mining |
| TRADEGATE |
Perseus Mining and TRADEGATE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Perseus Mining and TRADEGATE
The main advantage of trading using opposite Perseus Mining and TRADEGATE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Perseus Mining position performs unexpectedly, TRADEGATE 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 TRADEGATE will offset losses from the drop in TRADEGATE's long position.| Perseus Mining vs. ALEFARM BREWING DK 05 | Perseus Mining vs. MCEWEN MINING INC | Perseus Mining vs. DISTRICT METALS | Perseus Mining vs. AUST AGRICULTURAL |
| TRADEGATE vs. Penn National Gaming | TRADEGATE vs. VIVA WINE GROUP | TRADEGATE vs. Boyd Gaming | TRADEGATE vs. CONTAGIOUS GAMING INC |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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