Correlation Between 105340AR4 and Perseus Mining

Can any of the company-specific risk be diversified away by investing in both 105340AR4 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 105340AR4 and Perseus Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between BDN 755 15 MAR 28 and Perseus Mining Limited, you can compare the effects of market volatilities on 105340AR4 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 105340AR4 with a short position of Perseus Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of 105340AR4 and Perseus Mining.

Diversification Opportunities for 105340AR4 and Perseus Mining

-0.1

Correlation Coefficient

105340AR4  Perseus Mining

Good diversification

The 3 months correlation between 105340AR4 and Perseus is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding BDN 755 15 MAR 28 and Perseus Mining Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Perseus Mining and 105340AR4 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 BDN 755 15 MAR 28 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 105340AR4 i.e., 105340AR4 and Perseus Mining go up and down completely randomly.

Pair Corralation between 105340AR4 and Perseus Mining

Assuming the 90 days trading horizon BDN 755 15 MAR 28 is expected to under-perform the Perseus Mining. In addition to that, 105340AR4 is 1.1 times more volatile than Perseus Mining Limited. It trades about -0.14 of its total potential returns per unit of risk. Perseus Mining Limited is currently generating about 0.05 per unit of volatility. If you would invest  169.00  in Perseus Mining Limited on December 3, 2024 and sell it today you would earn a total of  9.00  from holding Perseus Mining Limited or generate 5.33% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	94.83%
Values	Daily Returns

BDN 755 15 MAR 28  vs.  Perseus Mining Limited

BDN 755 15

Risk-Adjusted Performance

Very Weak

Over the last 90 days BDN 755 15 MAR 28 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Bond's basic indicators remain somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for BDN 755 15 MAR 28 investors.

Perseus Mining

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Perseus Mining Limited are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Perseus Mining may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with 105340AR4 and Perseus Mining

The main advantage of trading using opposite 105340AR4 and Perseus Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 105340AR4 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 BDN 755 15 MAR 28 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.