Correlation Between Perseus Mining and IB Acquisition
Can any of the company-specific risk be diversified away by investing in both Perseus Mining and IB Acquisition 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 IB Acquisition 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 IB Acquisition Corp, you can compare the effects of market volatilities on Perseus Mining and IB Acquisition 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 IB Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Perseus Mining and IB Acquisition.
Diversification Opportunities for Perseus Mining and IB Acquisition
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Perseus and IBACR is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Perseus Mining Limited and IB Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IB Acquisition 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 IB Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IB Acquisition Corp has no effect on the direction of Perseus Mining i.e., Perseus Mining and IB Acquisition go up and down completely randomly.
Pair Corralation between Perseus Mining and IB Acquisition
Assuming the 90 days horizon Perseus Mining Limited is expected to generate 0.13 times more return on investment than IB Acquisition. However, Perseus Mining Limited is 7.42 times less risky than IB Acquisition. It trades about 0.1 of its potential returns per unit of risk. IB Acquisition Corp is currently generating about -0.09 per unit of risk. If you would invest 173.00 in Perseus Mining Limited on September 14, 2024 and sell it today you would earn a total of 7.00 from holding Perseus Mining Limited or generate 4.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 85.71% |
| Values | Daily Returns |
Perseus Mining Limited vs. IB Acquisition Corp
Performance |
| Timeline |
| Perseus Mining |
| IB Acquisition Corp |
Perseus Mining and IB Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Perseus Mining and IB Acquisition
The main advantage of trading using opposite Perseus Mining and IB Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Perseus Mining position performs unexpectedly, IB Acquisition 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 IB Acquisition will offset losses from the drop in IB Acquisition's long position.| Perseus Mining vs. Aurion Resources | Perseus Mining vs. Liberty Gold Corp | Perseus Mining vs. Rio2 Limited | Perseus Mining vs. Orezone Gold Corp |
| IB Acquisition vs. Perseus Mining Limited | IB Acquisition vs. Mesa Air Group | IB Acquisition vs. HF Sinclair Corp | IB Acquisition vs. Westinghouse Air Brake |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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