Correlation Between Perseus Mining and Citi Trends

Can any of the company-specific risk be diversified away by investing in both Perseus Mining and Citi Trends 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 Citi Trends 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 Citi Trends, you can compare the effects of market volatilities on Perseus Mining and Citi Trends 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 Citi Trends. Check out your portfolio center. Please also check ongoing floating volatility patterns of Perseus Mining and Citi Trends.

Diversification Opportunities for Perseus Mining and Citi Trends

-0.39

Correlation Coefficient

Perseus Mining  Citi Trends

Very good diversification

The 3 months correlation between Perseus and Citi is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Perseus Mining Limited and Citi Trends in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citi Trends 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 Citi Trends. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citi Trends has no effect on the direction of Perseus Mining i.e., Perseus Mining and Citi Trends go up and down completely randomly.

Pair Corralation between Perseus Mining and Citi Trends

Assuming the 90 days horizon Perseus Mining Limited is expected to generate 0.98 times more return on investment than Citi Trends. However, Perseus Mining Limited is 1.03 times less risky than Citi Trends. It trades about 0.07 of its potential returns per unit of risk. Citi Trends is currently generating about 0.01 per unit of risk. If you would invest  109.00  in Perseus Mining Limited on October 2, 2024 and sell it today you would earn a total of  49.00  from holding Perseus Mining Limited or generate 44.95% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	99.13%
Values	Daily Returns

Perseus Mining Limited  vs.  Citi Trends

Perseus Mining

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Perseus Mining Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Citi Trends

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Citi Trends are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of very inconsistent basic indicators, Citi Trends displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Perseus Mining and Citi Trends

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

The idea behind Perseus Mining Limited and Citi Trends 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.