Correlation Between Perseus Mining and Comstock Holding

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

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

Diversification Opportunities for Perseus Mining and Comstock Holding

0.58

Correlation Coefficient

Perseus Mining  Comstock Holding

Very weak diversification

The 3 months correlation between Perseus and Comstock is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Perseus Mining Limited and Comstock Holding Companies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Comstock Holding Com and Perseus Mining 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 Perseus Mining Limited are associated (or correlated) with Comstock Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Comstock Holding Com has no effect on the direction of Perseus Mining i.e., Perseus Mining and Comstock Holding go up and down completely randomly.

Pair Corralation between Perseus Mining and Comstock Holding

Assuming the 90 days horizon Perseus Mining Limited is expected to generate 0.43 times more return on investment than Comstock Holding. However, Perseus Mining Limited is 2.33 times less risky than Comstock Holding. It trades about 0.2 of its potential returns per unit of risk. Comstock Holding Companies is currently generating about -0.04 per unit of risk. If you would invest  162.00  in Perseus Mining Limited on September 15, 2024 and sell it today you would earn a total of  12.00  from holding Perseus Mining Limited or generate 7.41% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Perseus Mining Limited  vs.  Comstock Holding Companies

Perseus Mining

Risk-Adjusted Performance

1 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Perseus Mining Limited are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Perseus Mining is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Comstock Holding Com

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Comstock Holding Companies are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong fundamental indicators, Comstock Holding is not utilizing all of its potentials. The newest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Perseus Mining and Comstock Holding

The main advantage of trading using opposite Perseus Mining and Comstock Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Perseus Mining position performs unexpectedly, Comstock Holding 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 Comstock Holding will offset losses from the drop in Comstock Holding's long position.

The idea behind Perseus Mining Limited and Comstock Holding Companies 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.