Correlation Between Peel Mining and Pro Medicus
Can any of the company-specific risk be diversified away by investing in both Peel Mining and Pro Medicus 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 Pro Medicus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Peel Mining and Pro Medicus, you can compare the effects of market volatilities on Peel Mining and Pro Medicus 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 Pro Medicus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peel Mining and Pro Medicus.
Diversification Opportunities for Peel Mining and Pro Medicus
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Peel and Pro is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Peel Mining and Pro Medicus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pro Medicus 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 Pro Medicus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pro Medicus has no effect on the direction of Peel Mining i.e., Peel Mining and Pro Medicus go up and down completely randomly.
Pair Corralation between Peel Mining and Pro Medicus
Assuming the 90 days trading horizon Peel Mining is expected to generate 3.3 times less return on investment than Pro Medicus. In addition to that, Peel Mining is 2.33 times more volatile than Pro Medicus. It trades about 0.03 of its total potential returns per unit of risk. Pro Medicus is currently generating about 0.2 per unit of volatility. If you would invest 8,136 in Pro Medicus on September 1, 2024 and sell it today you would earn a total of 17,053 from holding Pro Medicus or generate 209.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Peel Mining vs. Pro Medicus
Performance |
| Timeline |
| Peel Mining |
| Pro Medicus |
Peel Mining and Pro Medicus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Peel Mining and Pro Medicus
The main advantage of trading using opposite Peel Mining and Pro Medicus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peel Mining position performs unexpectedly, Pro Medicus 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 Pro Medicus will offset losses from the drop in Pro Medicus' long position.| Peel Mining vs. Autosports Group | Peel Mining vs. Pioneer Credit | Peel Mining vs. Treasury Wine Estates | Peel Mining vs. Westpac Banking |
| Pro Medicus vs. Hutchison Telecommunications | Pro Medicus vs. Health and Plant | Pro Medicus vs. TPG Telecom | Pro Medicus vs. Ramsay Health Care |
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.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |