Correlation Between Telix Pharmaceuticals and Peel Mining

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

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

Diversification Opportunities for Telix Pharmaceuticals and Peel Mining

-0.24

Correlation Coefficient

Telix Pharmaceuticals  Peel Mining

Very good diversification

The 3 months correlation between Telix and Peel is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Telix Pharmaceuticals and Peel Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peel Mining and Telix Pharmaceuticals 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 Telix Pharmaceuticals are associated (or correlated) with Peel Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Peel Mining has no effect on the direction of Telix Pharmaceuticals i.e., Telix Pharmaceuticals and Peel Mining go up and down completely randomly.

Pair Corralation between Telix Pharmaceuticals and Peel Mining

Assuming the 90 days trading horizon Telix Pharmaceuticals is expected to generate 0.74 times more return on investment than Peel Mining. However, Telix Pharmaceuticals is 1.34 times less risky than Peel Mining. It trades about 0.08 of its potential returns per unit of risk. Peel Mining is currently generating about -0.14 per unit of risk. If you would invest  2,467  in Telix Pharmaceuticals on December 29, 2024 and sell it today you would earn a total of  302.00  from holding Telix Pharmaceuticals or generate 12.24% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Telix Pharmaceuticals  vs.  Peel Mining

Telix Pharmaceuticals

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Telix Pharmaceuticals are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Telix Pharmaceuticals unveiled solid returns over the last few months and may actually be approaching a breakup point.

Peel Mining

Risk-Adjusted Performance

Very Weak

Over the last 90 days Peel Mining 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 basic 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.

Pair Trading with Telix Pharmaceuticals and Peel Mining

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

The idea behind Telix Pharmaceuticals and Peel 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.