Correlation Between Perseus Mining and United States
Can any of the company-specific risk be diversified away by investing in both Perseus Mining and United States 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 United States 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 United States Steel, you can compare the effects of market volatilities on Perseus Mining and United States 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 United States. Check out your portfolio center. Please also check ongoing floating volatility patterns of Perseus Mining and United States.
Diversification Opportunities for Perseus Mining and United States
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Perseus and United is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Perseus Mining Limited and United States Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United States Steel 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 United States. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United States Steel has no effect on the direction of Perseus Mining i.e., Perseus Mining and United States go up and down completely randomly.
Pair Corralation between Perseus Mining and United States
Assuming the 90 days horizon Perseus Mining Limited is expected to generate 1.42 times more return on investment than United States. However, Perseus Mining is 1.42 times more volatile than United States Steel. It trades about 0.11 of its potential returns per unit of risk. United States Steel is currently generating about 0.05 per unit of risk. If you would invest 168.00 in Perseus Mining Limited on November 28, 2024 and sell it today you would earn a total of 10.00 from holding Perseus Mining Limited or generate 5.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Perseus Mining Limited vs. United States Steel
Performance |
| Timeline |
| Perseus Mining |
| United States Steel |
Perseus Mining and United States Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Perseus Mining and United States
The main advantage of trading using opposite Perseus Mining and United States positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Perseus Mining position performs unexpectedly, United States 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 United States will offset losses from the drop in United States' long position.| Perseus Mining vs. VIENNA INSURANCE GR | Perseus Mining vs. Singapore Reinsurance | Perseus Mining vs. HANOVER INSURANCE | Perseus Mining vs. CanSino Biologics |
| United States vs. Norwegian Air Shuttle | United States vs. Ryanair Holdings plc | United States vs. CHINA SOUTHN AIR H | United States vs. LPKF Laser Electronics |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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