Correlation Between Perseus Mining and 857477BT9

Can any of the company-specific risk be diversified away by investing in both Perseus Mining and 857477BT9 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 857477BT9 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 STT 2623 07 FEB 33, you can compare the effects of market volatilities on Perseus Mining and 857477BT9 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 857477BT9. Check out your portfolio center. Please also check ongoing floating volatility patterns of Perseus Mining and 857477BT9.

Diversification Opportunities for Perseus Mining and 857477BT9

-0.13

Correlation Coefficient

Perseus Mining  857477BT9

Good diversification

The 3 months correlation between Perseus and 857477BT9 is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Perseus Mining Limited and STT 2623 07 FEB 33 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STT 2623 07 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 857477BT9. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STT 2623 07 has no effect on the direction of Perseus Mining i.e., Perseus Mining and 857477BT9 go up and down completely randomly.

Pair Corralation between Perseus Mining and 857477BT9

Assuming the 90 days horizon Perseus Mining Limited is expected to generate 4.71 times more return on investment than 857477BT9. However, Perseus Mining is 4.71 times more volatile than STT 2623 07 FEB 33. It trades about 0.03 of its potential returns per unit of risk. STT 2623 07 FEB 33 is currently generating about -0.15 per unit of risk. If you would invest  169.00  in Perseus Mining Limited on September 12, 2024 and sell it today you would earn a total of  5.00  from holding Perseus Mining Limited or generate 2.96% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	92.06%
Values	Daily Returns

Perseus Mining Limited  vs.  STT 2623 07 FEB 33

Perseus Mining

Risk-Adjusted Performance

2 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Perseus Mining Limited are ranked lower than 2 (%) 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.

STT 2623 07

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days STT 2623 07 FEB 33 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, 857477BT9 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 857477BT9

The main advantage of trading using opposite Perseus Mining and 857477BT9 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Perseus Mining position performs unexpectedly, 857477BT9 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 857477BT9 will offset losses from the drop in 857477BT9's long position.

The idea behind Perseus Mining Limited and STT 2623 07 FEB 33 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.