Correlation Between Tigers Realm and Perseus Mining

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

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

Diversification Opportunities for Tigers Realm and Perseus Mining

-0.09

Correlation Coefficient

Tigers Realm  Perseus Mining

Good diversification

The 3 months correlation between Tigers and Perseus is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Tigers Realm Coal and Perseus Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Perseus Mining and Tigers Realm 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 Tigers Realm Coal 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 Tigers Realm i.e., Tigers Realm and Perseus Mining go up and down completely randomly.

Pair Corralation between Tigers Realm and Perseus Mining

Assuming the 90 days trading horizon Tigers Realm Coal is expected to generate 3.13 times more return on investment than Perseus Mining. However, Tigers Realm is 3.13 times more volatile than Perseus Mining. It trades about 0.03 of its potential returns per unit of risk. Perseus Mining is currently generating about 0.04 per unit of risk. If you would invest  0.30  in Tigers Realm Coal on October 8, 2024 and sell it today you would earn a total of  0.00  from holding Tigers Realm Coal or generate 0.0% return on investment over 90 days.

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

Tigers Realm Coal  vs.  Perseus Mining

Tigers Realm Coal

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Tigers Realm Coal are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain technical and fundamental indicators, Tigers Realm may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Perseus Mining

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Perseus Mining are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Perseus Mining is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Tigers Realm and Perseus Mining

The main advantage of trading using opposite Tigers Realm and Perseus Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tigers Realm 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 Tigers Realm Coal 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.

Check out your portfolio center.

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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.