Correlation Between Pekin Life and Perseus Mining
Can any of the company-specific risk be diversified away by investing in both Pekin Life and Perseus Mining 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 Pekin Life and Perseus Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pekin Life Insurance and Perseus Mining Limited, you can compare the effects of market volatilities on Pekin Life and Perseus Mining 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 Pekin Life with a short position of Perseus Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pekin Life and Perseus Mining.
Diversification Opportunities for Pekin Life and Perseus Mining
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Pekin and Perseus is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Pekin Life Insurance and Perseus Mining Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Perseus Mining and Pekin Life 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 Pekin Life Insurance are associated (or correlated) with Perseus Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Perseus Mining has no effect on the direction of Pekin Life i.e., Pekin Life and Perseus Mining go up and down completely randomly.
Pair Corralation between Pekin Life and Perseus Mining
Given the investment horizon of 90 days Pekin Life Insurance is expected to generate 0.11 times more return on investment than Perseus Mining. However, Pekin Life Insurance is 9.47 times less risky than Perseus Mining. It trades about 0.23 of its potential returns per unit of risk. Perseus Mining Limited is currently generating about -0.05 per unit of risk. If you would invest 1,150 in Pekin Life Insurance on August 28, 2024 and sell it today you would earn a total of 25.00 from holding Pekin Life Insurance or generate 2.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pekin Life Insurance vs. Perseus Mining Limited
Performance |
| Timeline |
| Pekin Life Insurance |
| Perseus Mining |
Pekin Life and Perseus Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pekin Life and Perseus Mining
The main advantage of trading using opposite Pekin Life and Perseus Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pekin Life position performs unexpectedly, Perseus Mining 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 Perseus Mining will offset losses from the drop in Perseus Mining's long position.| Pekin Life vs. Invesco High Income | Pekin Life vs. Blackrock Muniholdings Ny | Pekin Life vs. MFS Investment Grade | Pekin Life vs. Federated Premier Municipal |
| Perseus Mining vs. Aurion Resources | Perseus Mining vs. Liberty Gold Corp | Perseus Mining vs. Orezone Gold Corp | Perseus Mining vs. Fortuna Silver Mines |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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