Correlation Between Perseus Mining and Stepstone
Can any of the company-specific risk be diversified away by investing in both Perseus Mining and Stepstone 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 Stepstone 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 Stepstone Group, you can compare the effects of market volatilities on Perseus Mining and Stepstone 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 Stepstone. Check out your portfolio center. Please also check ongoing floating volatility patterns of Perseus Mining and Stepstone.
Diversification Opportunities for Perseus Mining and Stepstone
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Perseus and Stepstone is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Perseus Mining Limited and Stepstone Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stepstone Group 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 Stepstone. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stepstone Group has no effect on the direction of Perseus Mining i.e., Perseus Mining and Stepstone go up and down completely randomly.
Pair Corralation between Perseus Mining and Stepstone
Assuming the 90 days horizon Perseus Mining is expected to generate 2.39 times less return on investment than Stepstone. In addition to that, Perseus Mining is 1.54 times more volatile than Stepstone Group. It trades about 0.04 of its total potential returns per unit of risk. Stepstone Group is currently generating about 0.15 per unit of volatility. If you would invest 4,443 in Stepstone Group on September 2, 2024 and sell it today you would earn a total of 2,146 from holding Stepstone Group or generate 48.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Perseus Mining Limited vs. Stepstone Group
Performance |
| Timeline |
| Perseus Mining |
| Stepstone Group |
Perseus Mining and Stepstone Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Perseus Mining and Stepstone
The main advantage of trading using opposite Perseus Mining and Stepstone positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Perseus Mining position performs unexpectedly, Stepstone 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 Stepstone will offset losses from the drop in Stepstone's long position.| Perseus Mining vs. Aurion Resources | Perseus Mining vs. Rio2 Limited | Perseus Mining vs. Palamina Corp | Perseus Mining vs. Grande Portage Resources |
| Stepstone vs. Munivest Fund | Stepstone vs. Blackrock Muniyield Quality | Stepstone vs. Federated Investors B | Stepstone vs. Federated Premier Municipal |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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