Correlation Between Perseus Mining and TransAlta
Can any of the company-specific risk be diversified away by investing in both Perseus Mining and TransAlta 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 TransAlta 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 TransAlta, you can compare the effects of market volatilities on Perseus Mining and TransAlta 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 TransAlta. Check out your portfolio center. Please also check ongoing floating volatility patterns of Perseus Mining and TransAlta.
Diversification Opportunities for Perseus Mining and TransAlta
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Perseus and TransAlta is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Perseus Mining Limited and TransAlta in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TransAlta 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 TransAlta. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TransAlta has no effect on the direction of Perseus Mining i.e., Perseus Mining and TransAlta go up and down completely randomly.
Pair Corralation between Perseus Mining and TransAlta
Assuming the 90 days horizon Perseus Mining Limited is expected to generate 0.98 times more return on investment than TransAlta. However, Perseus Mining Limited is 1.02 times less risky than TransAlta. It trades about 0.0 of its potential returns per unit of risk. TransAlta is currently generating about -0.1 per unit of risk. If you would invest 170.00 in Perseus Mining Limited on December 1, 2024 and sell it today you would lose (1.00) from holding Perseus Mining Limited or give up 0.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Perseus Mining Limited vs. TransAlta
Performance |
| Timeline |
| Perseus Mining |
| TransAlta |
Perseus Mining and TransAlta Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Perseus Mining and TransAlta
The main advantage of trading using opposite Perseus Mining and TransAlta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Perseus Mining position performs unexpectedly, TransAlta 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 TransAlta will offset losses from the drop in TransAlta's long position.| Perseus Mining vs. NORDHEALTH AS NK | Perseus Mining vs. Molina Healthcare | Perseus Mining vs. OPKO HEALTH | Perseus Mining vs. COMM HEALTH SYSTEMS |
| TransAlta vs. Elmos Semiconductor SE | TransAlta vs. Carnegie Clean Energy | TransAlta vs. GOME Retail Holdings | TransAlta vs. COSTCO WHOLESALE CDR |
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.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Global Correlations Find global opportunities by holding instruments from different markets |