Correlation Between Stratasys and Perseus Mining
Can any of the company-specific risk be diversified away by investing in both Stratasys and Perseus Mining 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 Stratasys and Perseus Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stratasys and Perseus Mining Limited, you can compare the effects of market volatilities on Stratasys and Perseus Mining 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 Stratasys with a short position of Perseus Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stratasys and Perseus Mining.
Diversification Opportunities for Stratasys and Perseus Mining
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Stratasys and Perseus is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Stratasys and Perseus Mining Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Perseus Mining and Stratasys 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 Stratasys are associated (or correlated) with Perseus Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Perseus Mining has no effect on the direction of Stratasys i.e., Stratasys and Perseus Mining go up and down completely randomly.
Pair Corralation between Stratasys and Perseus Mining
Given the investment horizon of 90 days Stratasys is expected to generate 1.61 times more return on investment than Perseus Mining. However, Stratasys is 1.61 times more volatile than Perseus Mining Limited. It trades about 0.21 of its potential returns per unit of risk. Perseus Mining Limited is currently generating about -0.06 per unit of risk. If you would invest 770.00 in Stratasys on August 28, 2024 and sell it today you would earn a total of 206.00 from holding Stratasys or generate 26.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stratasys vs. Perseus Mining Limited
Performance |
| Timeline |
| Stratasys |
| Perseus Mining |
Stratasys and Perseus Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stratasys and Perseus Mining
The main advantage of trading using opposite Stratasys and Perseus Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stratasys position performs unexpectedly, Perseus Mining 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 Perseus Mining will offset losses from the drop in Perseus Mining's long position.| Stratasys vs. D Wave Quantum | Stratasys vs. Rigetti Computing | Stratasys vs. Cricut Inc | Stratasys vs. Quantum Computing |
| Perseus Mining vs. Aurion Resources | Perseus Mining vs. Liberty Gold Corp | Perseus Mining vs. Orezone Gold Corp | Perseus Mining vs. Radisson Mining Resources |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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