Correlation Between Perseus Mining and Winshear Gold
Can any of the company-specific risk be diversified away by investing in both Perseus Mining and Winshear 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 Winshear 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 Winshear Gold Corp, you can compare the effects of market volatilities on Perseus Mining and Winshear 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 Winshear Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Perseus Mining and Winshear Gold.
Diversification Opportunities for Perseus Mining and Winshear Gold
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Perseus and Winshear is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Perseus Mining and Winshear Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Winshear 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 Winshear Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Winshear Gold Corp has no effect on the direction of Perseus Mining i.e., Perseus Mining and Winshear Gold go up and down completely randomly.
Pair Corralation between Perseus Mining and Winshear Gold
Assuming the 90 days trading horizon Perseus Mining is expected to generate 9.17 times less return on investment than Winshear Gold. But when comparing it to its historical volatility, Perseus Mining is 7.67 times less risky than Winshear Gold. It trades about 0.13 of its potential returns per unit of risk. Winshear Gold Corp is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 8.00 in Winshear Gold Corp on November 28, 2024 and sell it today you would earn a total of 3.00 from holding Winshear Gold Corp or generate 37.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Perseus Mining vs. Winshear Gold Corp
Performance |
| Timeline |
| Perseus Mining |
| Winshear Gold Corp |
Perseus Mining and Winshear Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Perseus Mining and Winshear Gold
The main advantage of trading using opposite Perseus Mining and Winshear Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Perseus Mining position performs unexpectedly, Winshear 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 Winshear Gold will offset losses from the drop in Winshear 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 |
| Winshear Gold vs. Magna Mining | Winshear Gold vs. Canso Select Opportunities | Winshear Gold vs. Vizsla Silver Corp | Winshear Gold vs. Americas Silver 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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