Correlation Between Perseus Mining and Stakeholder Gold
Can any of the company-specific risk be diversified away by investing in both Perseus Mining and Stakeholder 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 Stakeholder 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 Stakeholder Gold Corp, you can compare the effects of market volatilities on Perseus Mining and Stakeholder 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 Stakeholder Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Perseus Mining and Stakeholder Gold.
Diversification Opportunities for Perseus Mining and Stakeholder Gold
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Perseus and Stakeholder is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Perseus Mining and Stakeholder Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stakeholder Gold Corp 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 Stakeholder Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stakeholder Gold Corp has no effect on the direction of Perseus Mining i.e., Perseus Mining and Stakeholder Gold go up and down completely randomly.
Pair Corralation between Perseus Mining and Stakeholder Gold
Assuming the 90 days trading horizon Perseus Mining is expected to under-perform the Stakeholder Gold. But the stock apears to be less risky and, when comparing its historical volatility, Perseus Mining is 2.28 times less risky than Stakeholder Gold. The stock trades about -0.15 of its potential returns per unit of risk. The Stakeholder Gold Corp is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 96.00 in Stakeholder Gold Corp on September 4, 2024 and sell it today you would lose (1.00) from holding Stakeholder Gold Corp or give up 1.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Perseus Mining vs. Stakeholder Gold Corp
Performance |
| Timeline |
| Perseus Mining |
| Stakeholder Gold Corp |
Perseus Mining and Stakeholder Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Perseus Mining and Stakeholder Gold
The main advantage of trading using opposite Perseus Mining and Stakeholder Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Perseus Mining position performs unexpectedly, Stakeholder 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 Stakeholder Gold will offset losses from the drop in Stakeholder 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 |
| Stakeholder Gold vs. First Majestic Silver | Stakeholder Gold vs. Ivanhoe Energy | Stakeholder Gold vs. Orezone Gold Corp | Stakeholder 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |