Correlation Between Perseus Mining and Althea Group
Can any of the company-specific risk be diversified away by investing in both Perseus Mining and Althea 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 Perseus Mining and Althea Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Perseus Mining and Althea Group Holdings, you can compare the effects of market volatilities on Perseus Mining and Althea 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 Perseus Mining with a short position of Althea Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Perseus Mining and Althea Group.
Diversification Opportunities for Perseus Mining and Althea Group
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Perseus and Althea is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Perseus Mining and Althea Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Althea Group Holdings 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 are associated (or correlated) with Althea Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Althea Group Holdings has no effect on the direction of Perseus Mining i.e., Perseus Mining and Althea Group go up and down completely randomly.
Pair Corralation between Perseus Mining and Althea Group
Assuming the 90 days trading horizon Perseus Mining is expected to generate 0.48 times more return on investment than Althea Group. However, Perseus Mining is 2.1 times less risky than Althea Group. It trades about 0.03 of its potential returns per unit of risk. Althea Group Holdings is currently generating about 0.0 per unit of risk. If you would invest 207.00 in Perseus Mining on September 3, 2024 and sell it today you would earn a total of 57.00 from holding Perseus Mining or generate 27.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Perseus Mining vs. Althea Group Holdings
Performance |
| Timeline |
| Perseus Mining |
| Althea Group Holdings |
Perseus Mining and Althea Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Perseus Mining and Althea Group
The main advantage of trading using opposite Perseus Mining and Althea Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Perseus Mining position performs unexpectedly, Althea 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 Althea Group will offset losses from the drop in Althea Group's long position.| Perseus Mining vs. Northern Star Resources | Perseus Mining vs. Evolution Mining | Perseus Mining vs. Bluescope Steel | Perseus Mining vs. Aneka Tambang Tbk |
| Althea Group vs. Perseus Mining | Althea Group vs. Garda Diversified Ppty | Althea Group vs. MFF Capital Investments | Althea Group vs. BKI Investment |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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