Correlation Between Perseus Mining and Sea
Can any of the company-specific risk be diversified away by investing in both Perseus Mining and Sea 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 Sea 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 Sea, you can compare the effects of market volatilities on Perseus Mining and Sea 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 Sea. Check out your portfolio center. Please also check ongoing floating volatility patterns of Perseus Mining and Sea.
Diversification Opportunities for Perseus Mining and Sea
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Perseus and Sea is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Perseus Mining Limited and Sea in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sea 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 Sea. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sea has no effect on the direction of Perseus Mining i.e., Perseus Mining and Sea go up and down completely randomly.
Pair Corralation between Perseus Mining and Sea
Assuming the 90 days horizon Perseus Mining is expected to generate 2.61 times less return on investment than Sea. But when comparing it to its historical volatility, Perseus Mining Limited is 1.1 times less risky than Sea. It trades about 0.03 of its potential returns per unit of risk. Sea is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 5,023 in Sea on September 12, 2024 and sell it today you would earn a total of 6,182 from holding Sea or generate 123.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 97.17% |
| Values | Daily Returns |
Perseus Mining Limited vs. Sea
Performance |
| Timeline |
| Perseus Mining |
| Sea |
Perseus Mining and Sea Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Perseus Mining and Sea
The main advantage of trading using opposite Perseus Mining and Sea positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Perseus Mining position performs unexpectedly, Sea 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 Sea will offset losses from the drop in Sea's long position.| Perseus Mining vs. Revival Gold | Perseus Mining vs. Galiano Gold | Perseus Mining vs. US Gold Corp | Perseus Mining 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |