Correlation Between Outfront and Perseus Mining
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By analyzing existing cross correlation between Outfront Media Capital and Perseus Mining Limited, you can compare the effects of market volatilities on Outfront 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 Outfront with a short position of Perseus Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Outfront and Perseus Mining.
Diversification Opportunities for Outfront and Perseus Mining
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Outfront and Perseus is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Outfront Media Capital and Perseus Mining Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Perseus Mining and Outfront 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 Outfront Media Capital 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 Outfront i.e., Outfront and Perseus Mining go up and down completely randomly.
Pair Corralation between Outfront and Perseus Mining
Assuming the 90 days trading horizon Outfront is expected to generate 3.84 times less return on investment than Perseus Mining. But when comparing it to its historical volatility, Outfront Media Capital is 3.08 times less risky than Perseus Mining. It trades about 0.03 of its potential returns per unit of risk. Perseus Mining Limited is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 139.00 in Perseus Mining Limited on September 14, 2024 and sell it today you would earn a total of 41.00 from holding Perseus Mining Limited or generate 29.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 97.71% |
| Values | Daily Returns |
Outfront Media Capital vs. Perseus Mining Limited
Performance |
| Timeline |
| Outfront Media Capital |
| Perseus Mining |
Outfront and Perseus Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Outfront and Perseus Mining
The main advantage of trading using opposite Outfront and Perseus Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Outfront 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.| Outfront vs. Perseus Mining Limited | Outfront vs. LENSAR Inc | Outfront vs. Forsys Metals Corp | Outfront vs. Barrick Gold Corp |
| Perseus Mining vs. Aurion Resources | Perseus Mining vs. Liberty Gold Corp | Perseus Mining vs. Rio2 Limited | Perseus Mining vs. Orezone Gold 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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