Correlation Between Perseus Mining and Yanzhou Coal
Can any of the company-specific risk be diversified away by investing in both Perseus Mining and Yanzhou Coal 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 Yanzhou Coal 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 Yanzhou Coal Mining, you can compare the effects of market volatilities on Perseus Mining and Yanzhou Coal 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 Yanzhou Coal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Perseus Mining and Yanzhou Coal.
Diversification Opportunities for Perseus Mining and Yanzhou Coal
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Perseus and Yanzhou is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Perseus Mining Limited and Yanzhou Coal Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yanzhou Coal Mining 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 Yanzhou Coal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yanzhou Coal Mining has no effect on the direction of Perseus Mining i.e., Perseus Mining and Yanzhou Coal go up and down completely randomly.
Pair Corralation between Perseus Mining and Yanzhou Coal
Assuming the 90 days horizon Perseus Mining Limited is expected to generate 0.78 times more return on investment than Yanzhou Coal. However, Perseus Mining Limited is 1.28 times less risky than Yanzhou Coal. It trades about 0.05 of its potential returns per unit of risk. Yanzhou Coal Mining is currently generating about 0.0 per unit of risk. If you would invest 150.00 in Perseus Mining Limited on November 2, 2024 and sell it today you would earn a total of 17.00 from holding Perseus Mining Limited or generate 11.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Perseus Mining Limited vs. Yanzhou Coal Mining
Performance |
| Timeline |
| Perseus Mining |
| Yanzhou Coal Mining |
Perseus Mining and Yanzhou Coal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Perseus Mining and Yanzhou Coal
The main advantage of trading using opposite Perseus Mining and Yanzhou Coal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Perseus Mining position performs unexpectedly, Yanzhou Coal 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 Yanzhou Coal will offset losses from the drop in Yanzhou Coal's long position.| Perseus Mining vs. EPSILON HEALTHCARE LTD | Perseus Mining vs. Universal Health Realty | Perseus Mining vs. OPKO HEALTH | Perseus Mining vs. BOSTON BEER A |
| Yanzhou Coal vs. LG Display Co | Yanzhou Coal vs. Computershare Limited | Yanzhou Coal vs. DXC Technology Co | Yanzhou Coal vs. TRAVEL LEISURE DL 01 |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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