Correlation Between Perseus Mining and Akanda Corp
Can any of the company-specific risk be diversified away by investing in both Perseus Mining and Akanda Corp 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 Akanda Corp 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 Akanda Corp, you can compare the effects of market volatilities on Perseus Mining and Akanda Corp 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 Akanda Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Perseus Mining and Akanda Corp.
Diversification Opportunities for Perseus Mining and Akanda Corp
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Perseus and Akanda is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Perseus Mining Limited and Akanda Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akanda Corp 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 Akanda Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akanda Corp has no effect on the direction of Perseus Mining i.e., Perseus Mining and Akanda Corp go up and down completely randomly.
Pair Corralation between Perseus Mining and Akanda Corp
Assuming the 90 days horizon Perseus Mining Limited is expected to under-perform the Akanda Corp. But the pink sheet apears to be less risky and, when comparing its historical volatility, Perseus Mining Limited is 1.3 times less risky than Akanda Corp. The pink sheet trades about -0.08 of its potential returns per unit of risk. The Akanda Corp is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 144.00 in Akanda Corp on September 1, 2024 and sell it today you would earn a total of 31.00 from holding Akanda Corp or generate 21.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Perseus Mining Limited vs. Akanda Corp
Performance |
| Timeline |
| Perseus Mining |
| Akanda Corp |
Perseus Mining and Akanda Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Perseus Mining and Akanda Corp
The main advantage of trading using opposite Perseus Mining and Akanda Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Perseus Mining position performs unexpectedly, Akanda Corp 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 Akanda Corp will offset losses from the drop in Akanda Corp's long position.| Perseus Mining vs. Aurion Resources | Perseus Mining vs. Rio2 Limited | Perseus Mining vs. Palamina Corp | Perseus Mining vs. BTU Metals Corp |
| Akanda Corp vs. Tff Pharmaceuticals | Akanda Corp vs. Eliem Therapeutics | Akanda Corp vs. Inhibrx | Akanda Corp vs. Enliven Therapeutics |
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.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |