Correlation Between CEMEX and Perseus Mining
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By analyzing existing cross correlation between CEMEX 5125 and Perseus Mining Limited, you can compare the effects of market volatilities on CEMEX 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 CEMEX with a short position of Perseus Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of CEMEX and Perseus Mining.
Diversification Opportunities for CEMEX and Perseus Mining
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between CEMEX and Perseus is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding CEMEX 5125 and Perseus Mining Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Perseus Mining and CEMEX 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 CEMEX 5125 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 CEMEX i.e., CEMEX and Perseus Mining go up and down completely randomly.
Pair Corralation between CEMEX and Perseus Mining
Assuming the 90 days trading horizon CEMEX 5125 is expected to generate 0.35 times more return on investment than Perseus Mining. However, CEMEX 5125 is 2.86 times less risky than Perseus Mining. It trades about -0.24 of its potential returns per unit of risk. Perseus Mining Limited is currently generating about -0.08 per unit of risk. If you would invest 9,763 in CEMEX 5125 on September 2, 2024 and sell it today you would lose (388.00) from holding CEMEX 5125 or give up 3.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 57.14% |
| Values | Daily Returns |
CEMEX 5125 vs. Perseus Mining Limited
Performance |
| Timeline |
| CEMEX 5125 |
| Perseus Mining |
CEMEX and Perseus Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CEMEX and Perseus Mining
The main advantage of trading using opposite CEMEX and Perseus Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CEMEX 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.The idea behind CEMEX 5125 and Perseus Mining Limited pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Perseus Mining vs. Aurion Resources | Perseus Mining vs. Rio2 Limited | Perseus Mining vs. Palamina Corp | Perseus Mining vs. Grande Portage 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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