Correlation Between Perseus Mining and Kura Sushi
Can any of the company-specific risk be diversified away by investing in both Perseus Mining and Kura Sushi 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 Kura Sushi 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 Kura Sushi USA, you can compare the effects of market volatilities on Perseus Mining and Kura Sushi 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 Kura Sushi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Perseus Mining and Kura Sushi.
Diversification Opportunities for Perseus Mining and Kura Sushi
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Perseus and Kura is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Perseus Mining Limited and Kura Sushi USA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kura Sushi USA 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 Kura Sushi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kura Sushi USA has no effect on the direction of Perseus Mining i.e., Perseus Mining and Kura Sushi go up and down completely randomly.
Pair Corralation between Perseus Mining and Kura Sushi
Assuming the 90 days horizon Perseus Mining Limited is expected to under-perform the Kura Sushi. But the pink sheet apears to be less risky and, when comparing its historical volatility, Perseus Mining Limited is 1.19 times less risky than Kura Sushi. The pink sheet trades about -0.12 of its potential returns per unit of risk. The Kura Sushi USA is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 9,432 in Kura Sushi USA on August 26, 2024 and sell it today you would earn a total of 937.00 from holding Kura Sushi USA or generate 9.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Perseus Mining Limited vs. Kura Sushi USA
Performance |
| Timeline |
| Perseus Mining |
| Kura Sushi USA |
Perseus Mining and Kura Sushi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Perseus Mining and Kura Sushi
The main advantage of trading using opposite Perseus Mining and Kura Sushi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Perseus Mining position performs unexpectedly, Kura Sushi 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 Kura Sushi will offset losses from the drop in Kura Sushi'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 |
| Kura Sushi vs. Brinker International | Kura Sushi vs. Dennys Corp | Kura Sushi vs. Bloomin Brands | Kura Sushi vs. Jack In The |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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