Correlation Between Perseus Mining and Lewis Clark
Can any of the company-specific risk be diversified away by investing in both Perseus Mining and Lewis Clark 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 Lewis Clark 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 Lewis Clark Bancorp, you can compare the effects of market volatilities on Perseus Mining and Lewis Clark 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 Lewis Clark. Check out your portfolio center. Please also check ongoing floating volatility patterns of Perseus Mining and Lewis Clark.
Diversification Opportunities for Perseus Mining and Lewis Clark
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Perseus and Lewis is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Perseus Mining Limited and Lewis Clark Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lewis Clark Bancorp 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 Lewis Clark. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lewis Clark Bancorp has no effect on the direction of Perseus Mining i.e., Perseus Mining and Lewis Clark go up and down completely randomly.
Pair Corralation between Perseus Mining and Lewis Clark
If you would invest 172.00 in Perseus Mining Limited on September 13, 2024 and sell it today you would earn a total of 2.00 from holding Perseus Mining Limited or generate 1.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Perseus Mining Limited vs. Lewis Clark Bancorp
Performance |
| Timeline |
| Perseus Mining |
| Lewis Clark Bancorp |
Perseus Mining and Lewis Clark Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Perseus Mining and Lewis Clark
The main advantage of trading using opposite Perseus Mining and Lewis Clark positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Perseus Mining position performs unexpectedly, Lewis Clark 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 Lewis Clark will offset losses from the drop in Lewis Clark's long position.| Perseus Mining vs. Revival Gold | Perseus Mining vs. Galiano Gold | Perseus Mining vs. US Gold Corp | Perseus Mining vs. HUMANA INC |
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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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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