Correlation Between Perseus Mining and 26442CAH7

Can any of the company-specific risk be diversified away by investing in both Perseus Mining and 26442CAH7 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 26442CAH7 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 DUKE ENERGY CAROLINAS, you can compare the effects of market volatilities on Perseus Mining and 26442CAH7 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 26442CAH7. Check out your portfolio center. Please also check ongoing floating volatility patterns of Perseus Mining and 26442CAH7.

Diversification Opportunities for Perseus Mining and 26442CAH7

0.47

Correlation Coefficient

Perseus Mining  26442CAH7

Very weak diversification

The 3 months correlation between Perseus and 26442CAH7 is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Perseus Mining Limited and DUKE ENERGY CAROLINAS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DUKE ENERGY CAROLINAS 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 26442CAH7. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DUKE ENERGY CAROLINAS has no effect on the direction of Perseus Mining i.e., Perseus Mining and 26442CAH7 go up and down completely randomly.

Pair Corralation between Perseus Mining and 26442CAH7

Assuming the 90 days horizon Perseus Mining Limited is expected to generate 2.34 times more return on investment than 26442CAH7. However, Perseus Mining is 2.34 times more volatile than DUKE ENERGY CAROLINAS. It trades about 0.2 of its potential returns per unit of risk. DUKE ENERGY CAROLINAS is currently generating about 0.04 per unit of risk. If you would invest  157.00  in Perseus Mining Limited on December 26, 2024 and sell it today you would earn a total of  46.00  from holding Perseus Mining Limited or generate 29.3% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	96.72%
Values	Daily Returns

Perseus Mining Limited  vs.  DUKE ENERGY CAROLINAS

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.

DUKE ENERGY CAROLINAS

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in DUKE ENERGY CAROLINAS are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, 26442CAH7 is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Perseus Mining and 26442CAH7

The main advantage of trading using opposite Perseus Mining and 26442CAH7 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Perseus Mining position performs unexpectedly, 26442CAH7 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 26442CAH7 will offset losses from the drop in 26442CAH7's long position.

The idea behind Perseus Mining Limited and DUKE ENERGY CAROLINAS 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.