Correlation Between Perseus Mining and Ferrovial

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

Diversification Opportunities for Perseus Mining and Ferrovial

0.0

Correlation Coefficient

Perseus Mining  Ferrovial

Pay attention - limited upside

The 3 months correlation between Perseus and Ferrovial is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Perseus Mining Limited and Ferrovial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ferrovial 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 Ferrovial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ferrovial has no effect on the direction of Perseus Mining i.e., Perseus Mining and Ferrovial go up and down completely randomly.

Pair Corralation between Perseus Mining and Ferrovial

If you would invest  156.00  in Perseus Mining Limited on December 22, 2024 and sell it today you would earn a total of  45.00  from holding Perseus Mining Limited or generate 28.85% return on investment over 90 days.

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

Perseus Mining Limited  vs.  Ferrovial

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 weak basic indicators, Perseus Mining reported solid returns over the last few months and may actually be approaching a breakup point.

Ferrovial

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Perseus Mining and Ferrovial

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

The idea behind Perseus Mining Limited and Ferrovial 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.