Correlation Between Wesdome Gold and Perseus Mining
Can any of the company-specific risk be diversified away by investing in both Wesdome Gold 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 Wesdome Gold and Perseus Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wesdome Gold Mines and Perseus Mining Limited, you can compare the effects of market volatilities on Wesdome Gold 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 Wesdome Gold with a short position of Perseus Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wesdome Gold and Perseus Mining.
Diversification Opportunities for Wesdome Gold and Perseus Mining
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Wesdome and Perseus is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Wesdome Gold Mines and Perseus Mining Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Perseus Mining and Wesdome Gold 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 Wesdome Gold Mines 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 Wesdome Gold i.e., Wesdome Gold and Perseus Mining go up and down completely randomly.
Pair Corralation between Wesdome Gold and Perseus Mining
Assuming the 90 days horizon Wesdome Gold Mines is expected to generate 0.79 times more return on investment than Perseus Mining. However, Wesdome Gold Mines is 1.27 times less risky than Perseus Mining. It trades about 0.05 of its potential returns per unit of risk. Perseus Mining Limited is currently generating about 0.02 per unit of risk. If you would invest 805.00 in Wesdome Gold Mines on September 29, 2024 and sell it today you would earn a total of 91.00 from holding Wesdome Gold Mines or generate 11.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wesdome Gold Mines vs. Perseus Mining Limited
Performance |
| Timeline |
| Wesdome Gold Mines |
| Perseus Mining |
Wesdome Gold and Perseus Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wesdome Gold and Perseus Mining
The main advantage of trading using opposite Wesdome Gold and Perseus Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wesdome Gold 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.| Wesdome Gold vs. Victoria Gold Corp | Wesdome Gold vs. Cassiar Gold Corp | Wesdome Gold vs. Liberty Gold Corp | Wesdome Gold vs. I 80 Gold Corp |
| Perseus Mining vs. Lion One Metals | Perseus Mining vs. Westhaven Gold Corp | Perseus Mining vs. Wesdome Gold Mines | Perseus Mining vs. Gold Reserve |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |