Correlation Between SOCGEN and Perseus Mining
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By analyzing existing cross correlation between SOCGEN 6447 12 JAN 27 and Perseus Mining Limited, you can compare the effects of market volatilities on SOCGEN 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 SOCGEN with a short position of Perseus Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of SOCGEN and Perseus Mining.
Diversification Opportunities for SOCGEN and Perseus Mining
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SOCGEN and Perseus is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding SOCGEN 6447 12 JAN 27 and Perseus Mining Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Perseus Mining and SOCGEN 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 SOCGEN 6447 12 JAN 27 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 SOCGEN i.e., SOCGEN and Perseus Mining go up and down completely randomly.
Pair Corralation between SOCGEN and Perseus Mining
Assuming the 90 days trading horizon SOCGEN 6447 12 JAN 27 is expected to under-perform the Perseus Mining. But the bond apears to be less risky and, when comparing its historical volatility, SOCGEN 6447 12 JAN 27 is 13.35 times less risky than Perseus Mining. The bond trades about -0.48 of its potential returns per unit of risk. The Perseus Mining Limited is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 176.00 in Perseus Mining Limited on September 3, 2024 and sell it today you would lose (8.00) from holding Perseus Mining Limited or give up 4.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 26.19% |
| Values | Daily Returns |
SOCGEN 6447 12 JAN 27 vs. Perseus Mining Limited
Performance |
| Timeline |
| SOCGEN 6447 12 |
| Perseus Mining |
SOCGEN and Perseus Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SOCGEN and Perseus Mining
The main advantage of trading using opposite SOCGEN and Perseus Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SOCGEN 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.| SOCGEN vs. Perseus Mining Limited | SOCGEN vs. Parker Hannifin | SOCGEN vs. EMCOR Group | SOCGEN vs. Mangazeya Mining |
| Perseus Mining vs. Harmony Gold Mining | Perseus Mining vs. SPACE | Perseus Mining vs. T Rowe Price | Perseus Mining vs. Ampleforth |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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