Correlation Between Perseus Mining and Aya Gold
Can any of the company-specific risk be diversified away by investing in both Perseus Mining and Aya Gold 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 Aya Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Perseus Mining and Aya Gold Silver, you can compare the effects of market volatilities on Perseus Mining and Aya Gold 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 Aya Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Perseus Mining and Aya Gold.
Diversification Opportunities for Perseus Mining and Aya Gold
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Perseus and Aya is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Perseus Mining and Aya Gold Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aya Gold Silver 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 Aya Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aya Gold Silver has no effect on the direction of Perseus Mining i.e., Perseus Mining and Aya Gold go up and down completely randomly.
Pair Corralation between Perseus Mining and Aya Gold
Assuming the 90 days trading horizon Perseus Mining is expected to generate 0.37 times more return on investment than Aya Gold. However, Perseus Mining is 2.71 times less risky than Aya Gold. It trades about -0.09 of its potential returns per unit of risk. Aya Gold Silver is currently generating about -0.21 per unit of risk. If you would invest 254.00 in Perseus Mining on September 1, 2024 and sell it today you would lose (12.00) from holding Perseus Mining or give up 4.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Perseus Mining vs. Aya Gold Silver
Performance |
| Timeline |
| Perseus Mining |
| Aya Gold Silver |
Perseus Mining and Aya Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Perseus Mining and Aya Gold
The main advantage of trading using opposite Perseus Mining and Aya Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Perseus Mining position performs unexpectedly, Aya Gold 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 Aya Gold will offset losses from the drop in Aya Gold's long position.| Perseus Mining vs. Serabi Gold PLC | Perseus Mining vs. Sulliden Minerals SA | Perseus Mining vs. Precipitate Gold Corp | Perseus Mining vs. Rackla Metals |
| Aya Gold vs. First Majestic Silver | Aya Gold vs. Ivanhoe Energy | Aya Gold vs. Orezone Gold Corp | Aya Gold vs. Faraday Copper Corp |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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