Correlation Between Perseus Mining and Lendlease
Can any of the company-specific risk be diversified away by investing in both Perseus Mining and Lendlease 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 Lendlease into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Perseus Mining and Lendlease Group, you can compare the effects of market volatilities on Perseus Mining and Lendlease 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 Lendlease. Check out your portfolio center. Please also check ongoing floating volatility patterns of Perseus Mining and Lendlease.
Diversification Opportunities for Perseus Mining and Lendlease
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Perseus and Lendlease is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Perseus Mining and Lendlease Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lendlease 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 Lendlease. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lendlease Group has no effect on the direction of Perseus Mining i.e., Perseus Mining and Lendlease go up and down completely randomly.
Pair Corralation between Perseus Mining and Lendlease
Assuming the 90 days trading horizon Perseus Mining is expected to generate 1.46 times more return on investment than Lendlease. However, Perseus Mining is 1.46 times more volatile than Lendlease Group. It trades about 0.26 of its potential returns per unit of risk. Lendlease Group is currently generating about 0.15 per unit of risk. If you would invest 261.00 in Perseus Mining on November 7, 2024 and sell it today you would earn a total of 23.00 from holding Perseus Mining or generate 8.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Perseus Mining vs. Lendlease Group
Performance |
| Timeline |
| Perseus Mining |
| Lendlease Group |
Perseus Mining and Lendlease Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Perseus Mining and Lendlease
The main advantage of trading using opposite Perseus Mining and Lendlease positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Perseus Mining position performs unexpectedly, Lendlease 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 Lendlease will offset losses from the drop in Lendlease's long position.| Perseus Mining vs. Northern Star Resources | Perseus Mining vs. Evolution Mining | Perseus Mining vs. Bluescope Steel | Perseus Mining vs. De Grey Mining |
| Lendlease vs. Hutchison Telecommunications | Lendlease vs. Maggie Beer Holdings | Lendlease vs. Saferoads Holdings | Lendlease vs. Aussie Broadband |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |