Correlation Between Pembina Pipeline and Perseus Mining
Can any of the company-specific risk be diversified away by investing in both Pembina Pipeline and Perseus Mining 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 Pembina Pipeline and Perseus Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pembina Pipeline Corp and Perseus Mining, you can compare the effects of market volatilities on Pembina Pipeline and Perseus Mining 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 Pembina Pipeline with a short position of Perseus Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pembina Pipeline and Perseus Mining.
Diversification Opportunities for Pembina Pipeline and Perseus Mining
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Pembina and Perseus is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Pembina Pipeline Corp and Perseus Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Perseus Mining and Pembina Pipeline 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 Pembina Pipeline Corp are associated (or correlated) with Perseus Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Perseus Mining has no effect on the direction of Pembina Pipeline i.e., Pembina Pipeline and Perseus Mining go up and down completely randomly.
Pair Corralation between Pembina Pipeline and Perseus Mining
Assuming the 90 days trading horizon Pembina Pipeline is expected to generate 1.53 times less return on investment than Perseus Mining. But when comparing it to its historical volatility, Pembina Pipeline Corp is 3.12 times less risky than Perseus Mining. It trades about 0.17 of its potential returns per unit of risk. Perseus Mining is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 162.00 in Perseus Mining on September 2, 2024 and sell it today you would earn a total of 80.00 from holding Perseus Mining or generate 49.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pembina Pipeline Corp vs. Perseus Mining
Performance |
| Timeline |
| Pembina Pipeline Corp |
| Perseus Mining |
Pembina Pipeline and Perseus Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pembina Pipeline and Perseus Mining
The main advantage of trading using opposite Pembina Pipeline and Perseus Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pembina Pipeline position performs unexpectedly, Perseus Mining 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 Perseus Mining will offset losses from the drop in Perseus Mining's long position.| Pembina Pipeline vs. TGS Esports | Pembina Pipeline vs. Network Media Group | Pembina Pipeline vs. Perseus Mining | Pembina Pipeline vs. Converge Technology Solutions |
| Perseus Mining vs. Serabi Gold PLC | Perseus Mining vs. Sulliden Minerals SA | Perseus Mining vs. Precipitate Gold Corp | Perseus Mining vs. Rackla Metals |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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