Correlation Between Perseus Mining and Global Payment
Can any of the company-specific risk be diversified away by investing in both Perseus Mining and Global Payment 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 Global Payment 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 Global Payment Technologies, you can compare the effects of market volatilities on Perseus Mining and Global Payment 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 Global Payment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Perseus Mining and Global Payment.
Diversification Opportunities for Perseus Mining and Global Payment
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Perseus and Global is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Perseus Mining Limited and Global Payment Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Payment Techn 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 Global Payment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Payment Techn has no effect on the direction of Perseus Mining i.e., Perseus Mining and Global Payment go up and down completely randomly.
Pair Corralation between Perseus Mining and Global Payment
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 | Flat |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Perseus Mining Limited vs. Global Payment Technologies
Performance |
| Timeline |
| Perseus Mining |
| Global Payment Techn |
Perseus Mining and Global Payment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Perseus Mining and Global Payment
The main advantage of trading using opposite Perseus Mining and Global Payment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Perseus Mining position performs unexpectedly, Global Payment 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 Global Payment will offset losses from the drop in Global Payment's long position.| Perseus Mining vs. Aurion Resources | Perseus Mining vs. Rio2 Limited | Perseus Mining vs. Palamina Corp | Perseus Mining vs. Grande Portage Resources |
| Global Payment vs. BCE Inc | Global Payment vs. Axiologix | Global Payment vs. Advanced Info Service | Global Payment vs. HUMANA INC |
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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