Correlation Between WHIRLPOOL and Perseus Mining
Can any of the company-specific risk be diversified away by investing in both WHIRLPOOL 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 WHIRLPOOL and Perseus Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WHIRLPOOL and Perseus Mining Limited, you can compare the effects of market volatilities on WHIRLPOOL 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 WHIRLPOOL with a short position of Perseus Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of WHIRLPOOL and Perseus Mining.
Diversification Opportunities for WHIRLPOOL and Perseus Mining
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between WHIRLPOOL and Perseus is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding WHIRLPOOL and Perseus Mining Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Perseus Mining and WHIRLPOOL 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 WHIRLPOOL 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 WHIRLPOOL i.e., WHIRLPOOL and Perseus Mining go up and down completely randomly.
Pair Corralation between WHIRLPOOL and Perseus Mining
Assuming the 90 days trading horizon WHIRLPOOL is expected to generate 0.93 times more return on investment than Perseus Mining. However, WHIRLPOOL is 1.08 times less risky than Perseus Mining. It trades about 0.28 of its potential returns per unit of risk. Perseus Mining Limited is currently generating about -0.07 per unit of risk. If you would invest 9,368 in WHIRLPOOL on September 2, 2024 and sell it today you would earn a total of 1,182 from holding WHIRLPOOL or generate 12.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
WHIRLPOOL vs. Perseus Mining Limited
Performance |
| Timeline |
| WHIRLPOOL |
| Perseus Mining |
WHIRLPOOL and Perseus Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WHIRLPOOL and Perseus Mining
The main advantage of trading using opposite WHIRLPOOL and Perseus Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WHIRLPOOL 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.| WHIRLPOOL vs. Perseus Mining Limited | WHIRLPOOL vs. Q2M Managementberatung AG | WHIRLPOOL vs. SBM OFFSHORE | WHIRLPOOL vs. Jupiter Fund Management |
| Perseus Mining vs. ZIJIN MINH UNSPADR20 | Perseus Mining vs. Superior Plus Corp | Perseus Mining vs. NMI Holdings | Perseus Mining vs. Origin Agritech |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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