Correlation Between Perseus Mining and FormFactor
Can any of the company-specific risk be diversified away by investing in both Perseus Mining and FormFactor 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 FormFactor 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 FormFactor, you can compare the effects of market volatilities on Perseus Mining and FormFactor 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 FormFactor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Perseus Mining and FormFactor.
Diversification Opportunities for Perseus Mining and FormFactor
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Perseus and FormFactor is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Perseus Mining Limited and FormFactor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FormFactor 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 FormFactor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FormFactor has no effect on the direction of Perseus Mining i.e., Perseus Mining and FormFactor go up and down completely randomly.
Pair Corralation between Perseus Mining and FormFactor
Assuming the 90 days horizon Perseus Mining is expected to generate 1.53 times less return on investment than FormFactor. In addition to that, Perseus Mining is 1.06 times more volatile than FormFactor. It trades about 0.03 of its total potential returns per unit of risk. FormFactor is currently generating about 0.05 per unit of volatility. If you would invest 2,410 in FormFactor on August 31, 2024 and sell it today you would earn a total of 1,521 from holding FormFactor or generate 63.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 97.37% |
| Values | Daily Returns |
Perseus Mining Limited vs. FormFactor
Performance |
| Timeline |
| Perseus Mining |
| FormFactor |
Perseus Mining and FormFactor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Perseus Mining and FormFactor
The main advantage of trading using opposite Perseus Mining and FormFactor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Perseus Mining position performs unexpectedly, FormFactor 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 FormFactor will offset losses from the drop in FormFactor's long position.| Perseus Mining vs. Aurion Resources | Perseus Mining vs. Rio2 Limited | Perseus Mining vs. Palamina Corp | Perseus Mining vs. BTU Metals Corp |
| FormFactor vs. Silicon Laboratories | FormFactor vs. Diodes Incorporated | FormFactor vs. MACOM Technology Solutions | FormFactor vs. Amkor Technology |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |