Correlation Between Perseus Mining and UnitedHealth Group
Can any of the company-specific risk be diversified away by investing in both Perseus Mining and UnitedHealth Group 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 UnitedHealth Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Perseus Mining and UnitedHealth Group CDR, you can compare the effects of market volatilities on Perseus Mining and UnitedHealth Group 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 UnitedHealth Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Perseus Mining and UnitedHealth Group.
Diversification Opportunities for Perseus Mining and UnitedHealth Group
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Perseus and UnitedHealth is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Perseus Mining and UnitedHealth Group CDR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UnitedHealth Group 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 UnitedHealth Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UnitedHealth Group CDR has no effect on the direction of Perseus Mining i.e., Perseus Mining and UnitedHealth Group go up and down completely randomly.
Pair Corralation between Perseus Mining and UnitedHealth Group
Assuming the 90 days trading horizon Perseus Mining is expected to generate 0.97 times more return on investment than UnitedHealth Group. However, Perseus Mining is 1.03 times less risky than UnitedHealth Group. It trades about 0.16 of its potential returns per unit of risk. UnitedHealth Group CDR is currently generating about -0.34 per unit of risk. If you would invest 251.00 in Perseus Mining on November 28, 2024 and sell it today you would earn a total of 18.00 from holding Perseus Mining or generate 7.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Perseus Mining vs. UnitedHealth Group CDR
Performance |
| Timeline |
| Perseus Mining |
| UnitedHealth Group CDR |
Perseus Mining and UnitedHealth Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Perseus Mining and UnitedHealth Group
The main advantage of trading using opposite Perseus Mining and UnitedHealth Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Perseus Mining position performs unexpectedly, UnitedHealth Group 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 UnitedHealth Group will offset losses from the drop in UnitedHealth Group'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 |
| UnitedHealth Group vs. Aya Gold Silver | UnitedHealth Group vs. Perseus Mining | UnitedHealth Group vs. Endeavour Silver Corp | UnitedHealth Group vs. Quorum Information Technologies |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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