Correlation Between 60 Degrees and Perseus Mining

Can any of the company-specific risk be diversified away by investing in both 60 Degrees 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 60 Degrees and Perseus Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between 60 Degrees Pharmaceuticals, and Perseus Mining Limited, you can compare the effects of market volatilities on 60 Degrees 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 60 Degrees with a short position of Perseus Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of 60 Degrees and Perseus Mining.

Diversification Opportunities for 60 Degrees and Perseus Mining

-0.06

Correlation Coefficient

60 Degrees  Perseus Mining

Good diversification

The 3 months correlation between SXTPW and Perseus is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding 60 Degrees Pharmaceuticals, and Perseus Mining Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Perseus Mining and 60 Degrees 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 60 Degrees Pharmaceuticals, 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 60 Degrees i.e., 60 Degrees and Perseus Mining go up and down completely randomly.

Pair Corralation between 60 Degrees and Perseus Mining

Assuming the 90 days horizon 60 Degrees Pharmaceuticals, is expected to generate 17.45 times more return on investment than Perseus Mining. However, 60 Degrees is 17.45 times more volatile than Perseus Mining Limited. It trades about 0.21 of its potential returns per unit of risk. Perseus Mining Limited is currently generating about -0.06 per unit of risk. If you would invest  1.52  in 60 Degrees Pharmaceuticals, on October 24, 2024 and sell it today you would earn a total of  1.48  from holding 60 Degrees Pharmaceuticals, or generate 97.37% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	71.19%
Values	Daily Returns

60 Degrees Pharmaceuticals,  vs.  Perseus Mining Limited

60 Degrees Pharmaceu

Risk-Adjusted Performance

0 of 100

Solid

Over the last 90 days 60 Degrees Pharmaceuticals, has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly weak basic indicators, 60 Degrees showed solid returns over the last few months and may actually be approaching a breakup point.

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 weak 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.

Pair Trading with 60 Degrees and Perseus Mining

The main advantage of trading using opposite 60 Degrees and Perseus Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 60 Degrees 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 60 Degrees Pharmaceuticals, and Perseus Mining Limited 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.