Correlation Between Perseus Mining and Boston Properties
Can any of the company-specific risk be diversified away by investing in both Perseus Mining and Boston Properties 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 Boston Properties 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 Boston Properties, you can compare the effects of market volatilities on Perseus Mining and Boston Properties 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 Boston Properties. Check out your portfolio center. Please also check ongoing floating volatility patterns of Perseus Mining and Boston Properties.
Diversification Opportunities for Perseus Mining and Boston Properties
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Perseus and Boston is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Perseus Mining Limited and Boston Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boston Properties 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 Boston Properties. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boston Properties has no effect on the direction of Perseus Mining i.e., Perseus Mining and Boston Properties go up and down completely randomly.
Pair Corralation between Perseus Mining and Boston Properties
Assuming the 90 days horizon Perseus Mining Limited is expected to generate 1.52 times more return on investment than Boston Properties. However, Perseus Mining is 1.52 times more volatile than Boston Properties. It trades about 0.06 of its potential returns per unit of risk. Boston Properties is currently generating about 0.07 per unit of risk. If you would invest 121.00 in Perseus Mining Limited on September 2, 2024 and sell it today you would earn a total of 47.00 from holding Perseus Mining Limited or generate 38.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Perseus Mining Limited vs. Boston Properties
Performance |
| Timeline |
| Perseus Mining |
| Boston Properties |
Perseus Mining and Boston Properties Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Perseus Mining and Boston Properties
The main advantage of trading using opposite Perseus Mining and Boston Properties positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Perseus Mining position performs unexpectedly, Boston Properties 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 Boston Properties will offset losses from the drop in Boston Properties' long position.| Perseus Mining vs. Aurion Resources | Perseus Mining vs. Rio2 Limited | Perseus Mining vs. Palamina Corp | Perseus Mining vs. Grande Portage Resources |
| Boston Properties vs. Douglas Emmett | Boston Properties vs. Vornado Realty Trust | Boston Properties vs. Highwoods Properties | Boston Properties vs. Piedmont Office Realty |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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