Correlation Between Perseus Mining and FSA
Can any of the company-specific risk be diversified away by investing in both Perseus Mining and FSA 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 FSA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Perseus Mining and FSA Group, you can compare the effects of market volatilities on Perseus Mining and FSA 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 FSA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Perseus Mining and FSA.
Diversification Opportunities for Perseus Mining and FSA
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Perseus and FSA is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Perseus Mining and FSA Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FSA 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 FSA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FSA Group has no effect on the direction of Perseus Mining i.e., Perseus Mining and FSA go up and down completely randomly.
Pair Corralation between Perseus Mining and FSA
Assuming the 90 days trading horizon Perseus Mining is expected to generate 1.62 times more return on investment than FSA. However, Perseus Mining is 1.62 times more volatile than FSA Group. It trades about 0.02 of its potential returns per unit of risk. FSA Group is currently generating about -0.1 per unit of risk. If you would invest 259.00 in Perseus Mining on October 11, 2024 and sell it today you would earn a total of 2.00 from holding Perseus Mining or generate 0.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 97.56% |
| Values | Daily Returns |
Perseus Mining vs. FSA Group
Performance |
| Timeline |
| Perseus Mining |
| FSA Group |
Perseus Mining and FSA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Perseus Mining and FSA
The main advantage of trading using opposite Perseus Mining and FSA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Perseus Mining position performs unexpectedly, FSA 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 FSA will offset losses from the drop in FSA's long position.| Perseus Mining vs. Dexus Convenience Retail | Perseus Mining vs. Advanced Braking Technology | Perseus Mining vs. Kip McGrath Education | Perseus Mining vs. Bio Gene Technology |
| FSA vs. Chalice Mining Limited | FSA vs. DMC Mining | FSA vs. Globe Metals Mining | FSA vs. Cleanaway Waste Management |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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