Correlation Between Ten Sixty and Perseus Mining

Can any of the company-specific risk be diversified away by investing in both Ten Sixty 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 Ten Sixty and Perseus Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Ten Sixty Four and Perseus Mining Limited, you can compare the effects of market volatilities on Ten Sixty 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 Ten Sixty with a short position of Perseus Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ten Sixty and Perseus Mining.

Diversification Opportunities for Ten Sixty and Perseus Mining

0.0

Correlation Coefficient

Ten Sixty  Perseus Mining

Pay attention - limited upside

The 3 months correlation between Ten and Perseus is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ten Sixty Four and Perseus Mining Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Perseus Mining and Ten Sixty 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 Ten Sixty Four 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 Ten Sixty i.e., Ten Sixty and Perseus Mining go up and down completely randomly.

Pair Corralation between Ten Sixty and Perseus Mining

If you would invest  158.00  in Perseus Mining Limited on December 28, 2024 and sell it today you would earn a total of  47.00  from holding Perseus Mining Limited or generate 29.75% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Ten Sixty Four  vs.  Perseus Mining Limited

Ten Sixty Four

Risk-Adjusted Performance

Very Weak

Over the last 90 days Ten Sixty Four has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable primary indicators, Ten Sixty is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Perseus Mining

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Perseus Mining Limited are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Perseus Mining reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Ten Sixty and Perseus Mining

The main advantage of trading using opposite Ten Sixty and Perseus Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ten Sixty 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 Ten Sixty Four 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.

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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.