Correlation Between Perseus Mining and ATAC Resources
Can any of the company-specific risk be diversified away by investing in both Perseus Mining and ATAC Resources 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 ATAC Resources 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 ATAC Resources, you can compare the effects of market volatilities on Perseus Mining and ATAC Resources 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 ATAC Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Perseus Mining and ATAC Resources.
Diversification Opportunities for Perseus Mining and ATAC Resources
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Perseus and ATAC is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Perseus Mining Limited and ATAC Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATAC Resources 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 ATAC Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATAC Resources has no effect on the direction of Perseus Mining i.e., Perseus Mining and ATAC Resources go up and down completely randomly.
Pair Corralation between Perseus Mining and ATAC Resources
Assuming the 90 days horizon Perseus Mining is expected to generate 6.21 times less return on investment than ATAC Resources. But when comparing it to its historical volatility, Perseus Mining Limited is 2.47 times less risky than ATAC Resources. It trades about 0.03 of its potential returns per unit of risk. ATAC Resources is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 6.00 in ATAC Resources on September 13, 2024 and sell it today you would earn a total of 3.28 from holding ATAC Resources or generate 54.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 28.07% |
| Values | Daily Returns |
Perseus Mining Limited vs. ATAC Resources
Performance |
| Timeline |
| Perseus Mining |
| ATAC Resources |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Perseus Mining and ATAC Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Perseus Mining and ATAC Resources
The main advantage of trading using opposite Perseus Mining and ATAC Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Perseus Mining position performs unexpectedly, ATAC Resources 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 ATAC Resources will offset losses from the drop in ATAC Resources' long position.| Perseus Mining vs. Revival Gold | Perseus Mining vs. Galiano Gold | Perseus Mining vs. US Gold Corp | Perseus Mining vs. HUMANA INC |
| ATAC Resources vs. Minnova Corp | ATAC Resources vs. Argo Gold | ATAC Resources vs. Advance Gold Corp | ATAC Resources vs. Blue Star Gold |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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