Correlation Between Perseus Mining and PROCTER GAMBLE
Can any of the company-specific risk be diversified away by investing in both Perseus Mining and PROCTER GAMBLE 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 PROCTER GAMBLE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Perseus Mining and PROCTER GAMBLE CDR, you can compare the effects of market volatilities on Perseus Mining and PROCTER GAMBLE 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 PROCTER GAMBLE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Perseus Mining and PROCTER GAMBLE.
Diversification Opportunities for Perseus Mining and PROCTER GAMBLE
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Perseus and PROCTER is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Perseus Mining and PROCTER GAMBLE CDR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PROCTER GAMBLE CDR 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 PROCTER GAMBLE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PROCTER GAMBLE CDR has no effect on the direction of Perseus Mining i.e., Perseus Mining and PROCTER GAMBLE go up and down completely randomly.
Pair Corralation between Perseus Mining and PROCTER GAMBLE
Assuming the 90 days trading horizon Perseus Mining is expected to under-perform the PROCTER GAMBLE. In addition to that, Perseus Mining is 1.69 times more volatile than PROCTER GAMBLE CDR. It trades about -0.15 of its total potential returns per unit of risk. PROCTER GAMBLE CDR is currently generating about 0.21 per unit of volatility. If you would invest 2,838 in PROCTER GAMBLE CDR on September 5, 2024 and sell it today you would earn a total of 165.00 from holding PROCTER GAMBLE CDR or generate 5.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Perseus Mining vs. PROCTER GAMBLE CDR
Performance |
| Timeline |
| Perseus Mining |
| PROCTER GAMBLE CDR |
Perseus Mining and PROCTER GAMBLE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Perseus Mining and PROCTER GAMBLE
The main advantage of trading using opposite Perseus Mining and PROCTER GAMBLE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Perseus Mining position performs unexpectedly, PROCTER GAMBLE 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 PROCTER GAMBLE will offset losses from the drop in PROCTER GAMBLE'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 |
| PROCTER GAMBLE vs. Vizsla Silver Corp | PROCTER GAMBLE vs. MAG Silver Corp | PROCTER GAMBLE vs. Nicola Mining | PROCTER GAMBLE vs. Perseus Mining |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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