Correlation Between Peel Mining and De Grey
Can any of the company-specific risk be diversified away by investing in both Peel Mining and De Grey 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 Peel Mining and De Grey into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Peel Mining and De Grey Mining, you can compare the effects of market volatilities on Peel Mining and De Grey 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 Peel Mining with a short position of De Grey. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peel Mining and De Grey.
Diversification Opportunities for Peel Mining and De Grey
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Peel and DEG is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Peel Mining and De Grey Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on De Grey Mining and Peel 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 Peel Mining are associated (or correlated) with De Grey. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of De Grey Mining has no effect on the direction of Peel Mining i.e., Peel Mining and De Grey go up and down completely randomly.
Pair Corralation between Peel Mining and De Grey
Assuming the 90 days trading horizon Peel Mining is expected to generate 8.81 times less return on investment than De Grey. In addition to that, Peel Mining is 2.55 times more volatile than De Grey Mining. It trades about 0.02 of its total potential returns per unit of risk. De Grey Mining is currently generating about 0.4 per unit of volatility. If you would invest 187.00 in De Grey Mining on November 9, 2024 and sell it today you would earn a total of 24.00 from holding De Grey Mining or generate 12.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Peel Mining vs. De Grey Mining
Performance |
| Timeline |
| Peel Mining |
| De Grey Mining |
Peel Mining and De Grey Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Peel Mining and De Grey
The main advantage of trading using opposite Peel Mining and De Grey positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peel Mining position performs unexpectedly, De Grey 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 De Grey will offset losses from the drop in De Grey's long position.| Peel Mining vs. Rare Foods Australia | Peel Mining vs. Dexus Convenience Retail | Peel Mining vs. Sports Entertainment Group | Peel Mining vs. My Foodie Box |
| De Grey vs. Home Consortium | De Grey vs. Dalaroo Metals | De Grey vs. Centaurus Metals | De Grey vs. Aeon Metals |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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