Correlation Between Perseus Mining and Alliant Energy
Can any of the company-specific risk be diversified away by investing in both Perseus Mining and Alliant Energy 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 Alliant Energy 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 Alliant Energy Corp, you can compare the effects of market volatilities on Perseus Mining and Alliant Energy 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 Alliant Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Perseus Mining and Alliant Energy.
Diversification Opportunities for Perseus Mining and Alliant Energy
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Perseus and Alliant is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Perseus Mining Limited and Alliant Energy Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alliant Energy 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 Alliant Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alliant Energy Corp has no effect on the direction of Perseus Mining i.e., Perseus Mining and Alliant Energy go up and down completely randomly.
Pair Corralation between Perseus Mining and Alliant Energy
Assuming the 90 days horizon Perseus Mining Limited is expected to under-perform the Alliant Energy. In addition to that, Perseus Mining is 2.39 times more volatile than Alliant Energy Corp. It trades about -0.08 of its total potential returns per unit of risk. Alliant Energy Corp is currently generating about 0.2 per unit of volatility. If you would invest 5,922 in Alliant Energy Corp on August 30, 2024 and sell it today you would earn a total of 437.00 from holding Alliant Energy Corp or generate 7.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Perseus Mining Limited vs. Alliant Energy Corp
Performance |
| Timeline |
| Perseus Mining |
| Alliant Energy Corp |
Perseus Mining and Alliant Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Perseus Mining and Alliant Energy
The main advantage of trading using opposite Perseus Mining and Alliant Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Perseus Mining position performs unexpectedly, Alliant Energy 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 Alliant Energy will offset losses from the drop in Alliant Energy's long position.| Perseus Mining vs. Vertiv Holdings Co | Perseus Mining vs. Nasdaq Inc | Perseus Mining vs. McDonalds | Perseus Mining vs. Walmart |
| Alliant Energy vs. DTE Energy | Alliant Energy vs. Ameren Corp | Alliant Energy vs. CenterPoint Energy | Alliant Energy vs. Pinnacle West Capital |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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