Correlation Between Apollo Global and Perseus Mining
Can any of the company-specific risk be diversified away by investing in both Apollo Global 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 Apollo Global and Perseus Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apollo Global Management and Perseus Mining Limited, you can compare the effects of market volatilities on Apollo Global 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 Apollo Global with a short position of Perseus Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Global and Perseus Mining.
Diversification Opportunities for Apollo Global and Perseus Mining
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Apollo and Perseus is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Global Management and Perseus Mining Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Perseus Mining and Apollo Global 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 Apollo Global 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 Apollo Global i.e., Apollo Global and Perseus Mining go up and down completely randomly.
Pair Corralation between Apollo Global and Perseus Mining
Given the investment horizon of 90 days Apollo Global is expected to generate 3.0 times less return on investment than Perseus Mining. But when comparing it to its historical volatility, Apollo Global Management is 5.36 times less risky than Perseus Mining. It trades about 0.1 of its potential returns per unit of risk. Perseus Mining Limited is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 211.00 in Perseus Mining Limited on March 27, 2025 and sell it today you would earn a total of 10.00 from holding Perseus Mining Limited or generate 4.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apollo Global Management vs. Perseus Mining Limited
Performance |
| Timeline |
| Apollo Global Management |
| Perseus Mining |
Apollo Global and Perseus Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apollo Global and Perseus Mining
The main advantage of trading using opposite Apollo Global and Perseus Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Global 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.| Apollo Global vs. ioneer Ltd American | Apollo Global vs. US GoldMining Common | Apollo Global vs. Denison Mines Corp | Apollo Global vs. Vulcan Materials |
| Perseus Mining vs. Aurion Resources | Perseus Mining vs. Liberty Gold Corp | Perseus Mining vs. Rio2 Limited | Perseus Mining vs. Orezone Gold Corp |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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