Correlation Between Perseus Mining and Centuria Capital
Can any of the company-specific risk be diversified away by investing in both Perseus Mining and Centuria Capital 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 Centuria Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Perseus Mining and Centuria Capital, you can compare the effects of market volatilities on Perseus Mining and Centuria Capital 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 Centuria Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Perseus Mining and Centuria Capital.
Diversification Opportunities for Perseus Mining and Centuria Capital
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Perseus and Centuria is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Perseus Mining and Centuria Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Centuria Capital 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 Centuria Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Centuria Capital has no effect on the direction of Perseus Mining i.e., Perseus Mining and Centuria Capital go up and down completely randomly.
Pair Corralation between Perseus Mining and Centuria Capital
Assuming the 90 days trading horizon Perseus Mining is expected to generate 1.03 times more return on investment than Centuria Capital. However, Perseus Mining is 1.03 times more volatile than Centuria Capital. It trades about 0.24 of its potential returns per unit of risk. Centuria Capital is currently generating about 0.06 per unit of risk. If you would invest 251.00 in Perseus Mining on September 13, 2024 and sell it today you would earn a total of 29.00 from holding Perseus Mining or generate 11.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Perseus Mining vs. Centuria Capital
Performance |
| Timeline |
| Perseus Mining |
| Centuria Capital |
Perseus Mining and Centuria Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Perseus Mining and Centuria Capital
The main advantage of trading using opposite Perseus Mining and Centuria Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Perseus Mining position performs unexpectedly, Centuria Capital 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 Centuria Capital will offset losses from the drop in Centuria Capital's long position.| Perseus Mining vs. Dug Technology | Perseus Mining vs. Kip McGrath Education | Perseus Mining vs. Regal Funds Management | Perseus Mining vs. Dexus Convenience Retail |
| Centuria Capital vs. Healthco Healthcare and | Centuria Capital vs. EVE Health Group | Centuria Capital vs. Kkr Credit Income | Centuria Capital vs. Oneview Healthcare PLC |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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