Correlation Between Perseus Mining and FleetPartners
Can any of the company-specific risk be diversified away by investing in both Perseus Mining and FleetPartners 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 FleetPartners into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Perseus Mining and FleetPartners Group, you can compare the effects of market volatilities on Perseus Mining and FleetPartners 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 FleetPartners. Check out your portfolio center. Please also check ongoing floating volatility patterns of Perseus Mining and FleetPartners.
Diversification Opportunities for Perseus Mining and FleetPartners
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Perseus and FleetPartners is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Perseus Mining and FleetPartners Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FleetPartners Group 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 FleetPartners. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FleetPartners Group has no effect on the direction of Perseus Mining i.e., Perseus Mining and FleetPartners go up and down completely randomly.
Pair Corralation between Perseus Mining and FleetPartners
Assuming the 90 days trading horizon Perseus Mining is expected to generate 1.45 times less return on investment than FleetPartners. In addition to that, Perseus Mining is 1.34 times more volatile than FleetPartners Group. It trades about 0.03 of its total potential returns per unit of risk. FleetPartners Group is currently generating about 0.06 per unit of volatility. If you would invest 196.00 in FleetPartners Group on September 3, 2024 and sell it today you would earn a total of 121.00 from holding FleetPartners Group or generate 61.73% 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. FleetPartners Group
Performance |
| Timeline |
| Perseus Mining |
| FleetPartners Group |
Perseus Mining and FleetPartners Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Perseus Mining and FleetPartners
The main advantage of trading using opposite Perseus Mining and FleetPartners positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Perseus Mining position performs unexpectedly, FleetPartners 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 FleetPartners will offset losses from the drop in FleetPartners' long position.| Perseus Mining vs. Northern Star Resources | Perseus Mining vs. Evolution Mining | Perseus Mining vs. Bluescope Steel | Perseus Mining vs. Aneka Tambang Tbk |
| FleetPartners vs. Carlton Investments | FleetPartners vs. Australian United Investment | FleetPartners vs. Macquarie Technology Group | FleetPartners vs. Regal 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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