Correlation Between Perseus Mining and PETRO
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By analyzing existing cross correlation between Perseus Mining Limited and PETRO CDA 7 percent, you can compare the effects of market volatilities on Perseus Mining and PETRO 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 PETRO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Perseus Mining and PETRO.
Diversification Opportunities for Perseus Mining and PETRO
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Perseus and PETRO is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Perseus Mining Limited and PETRO CDA 7 percent in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PETRO CDA 7 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 PETRO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PETRO CDA 7 has no effect on the direction of Perseus Mining i.e., Perseus Mining and PETRO go up and down completely randomly.
Pair Corralation between Perseus Mining and PETRO
Assuming the 90 days horizon Perseus Mining Limited is expected to generate 2.82 times more return on investment than PETRO. However, Perseus Mining is 2.82 times more volatile than PETRO CDA 7 percent. It trades about 0.03 of its potential returns per unit of risk. PETRO CDA 7 percent is currently generating about 0.0 per unit of risk. If you would invest 143.00 in Perseus Mining Limited on September 3, 2024 and sell it today you would earn a total of 25.00 from holding Perseus Mining Limited or generate 17.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 35.06% |
| Values | Daily Returns |
Perseus Mining Limited vs. PETRO CDA 7 percent
Performance |
| Timeline |
| Perseus Mining |
| PETRO CDA 7 |
Perseus Mining and PETRO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Perseus Mining and PETRO
The main advantage of trading using opposite Perseus Mining and PETRO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Perseus Mining position performs unexpectedly, PETRO 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 PETRO will offset losses from the drop in PETRO's long position.| Perseus Mining vs. Harmony Gold Mining | Perseus Mining vs. SPACE | Perseus Mining vs. T Rowe Price | Perseus Mining vs. Ampleforth |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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