Correlation Between Perpetua Resources and Platinum Group
Can any of the company-specific risk be diversified away by investing in both Perpetua Resources and Platinum Group 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 Perpetua Resources and Platinum Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Perpetua Resources Corp and Platinum Group Metals, you can compare the effects of market volatilities on Perpetua Resources and Platinum Group 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 Perpetua Resources with a short position of Platinum Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Perpetua Resources and Platinum Group.
Diversification Opportunities for Perpetua Resources and Platinum Group
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Perpetua and Platinum is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Perpetua Resources Corp and Platinum Group Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Platinum Group Metals and Perpetua Resources 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 Perpetua Resources Corp are associated (or correlated) with Platinum Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Platinum Group Metals has no effect on the direction of Perpetua Resources i.e., Perpetua Resources and Platinum Group go up and down completely randomly.
Pair Corralation between Perpetua Resources and Platinum Group
Given the investment horizon of 90 days Perpetua Resources Corp is expected to generate 1.0 times more return on investment than Platinum Group. However, Perpetua Resources is 1.0 times more volatile than Platinum Group Metals. It trades about 0.09 of its potential returns per unit of risk. Platinum Group Metals is currently generating about 0.04 per unit of risk. If you would invest 354.00 in Perpetua Resources Corp on August 29, 2024 and sell it today you would earn a total of 622.00 from holding Perpetua Resources Corp or generate 175.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Perpetua Resources Corp vs. Platinum Group Metals
Performance |
| Timeline |
| Perpetua Resources Corp |
| Platinum Group Metals |
Perpetua Resources and Platinum Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Perpetua Resources and Platinum Group
The main advantage of trading using opposite Perpetua Resources and Platinum Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Perpetua Resources position performs unexpectedly, Platinum Group 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 Platinum Group will offset losses from the drop in Platinum Group's long position.| Perpetua Resources vs. SilverCrest Metals | Perpetua Resources vs. New Pacific Metals | Perpetua Resources vs. Endeavour Silver Corp | Perpetua Resources vs. McEwen Mining |
| Platinum Group vs. Endeavour Silver Corp | Platinum Group vs. Avino Silver Gold | Platinum Group vs. Fortuna Silver Mines | Platinum Group vs. Impala Platinum Holdings |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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