Correlation Between Regal Funds and Perseus Mining

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

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

Diversification Opportunities for Regal Funds and Perseus Mining

-0.77

Correlation Coefficient

Regal Funds  Perseus Mining

Pay attention - limited upside

The 3 months correlation between Regal and Perseus is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Regal Funds Management and Perseus Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Perseus Mining and Regal Funds 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 Regal Funds Management are associated (or correlated) with Perseus Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Perseus Mining has no effect on the direction of Regal Funds i.e., Regal Funds and Perseus Mining go up and down completely randomly.

Pair Corralation between Regal Funds and Perseus Mining

Assuming the 90 days trading horizon Regal Funds Management is expected to under-perform the Perseus Mining. In addition to that, Regal Funds is 2.31 times more volatile than Perseus Mining. It trades about -0.12 of its total potential returns per unit of risk. Perseus Mining is currently generating about 0.23 per unit of volatility. If you would invest  256.00  in Perseus Mining on December 29, 2024 and sell it today you would earn a total of  78.00  from holding Perseus Mining or generate 30.47% return on investment over 90 days.

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

Regal Funds Management  vs.  Perseus Mining

Regal Funds Management

Risk-Adjusted Performance

Very Weak

Over the last 90 days Regal Funds Management has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's essential indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Perseus Mining

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Perseus Mining are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Perseus Mining unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Regal Funds and Perseus Mining

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

The idea behind Regal Funds Management and Perseus Mining 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.