Correlation Between Perseus Mining and Coloplast
Can any of the company-specific risk be diversified away by investing in both Perseus Mining and Coloplast 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 Perseus Mining and Coloplast into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Perseus Mining Limited and Coloplast A, you can compare the effects of market volatilities on Perseus Mining and Coloplast 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 Perseus Mining with a short position of Coloplast. Check out your portfolio center. Please also check ongoing floating volatility patterns of Perseus Mining and Coloplast.
Diversification Opportunities for Perseus Mining and Coloplast
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Perseus and Coloplast is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Perseus Mining Limited and Coloplast A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coloplast A and Perseus Mining 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 Perseus Mining Limited are associated (or correlated) with Coloplast. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coloplast A has no effect on the direction of Perseus Mining i.e., Perseus Mining and Coloplast go up and down completely randomly.
Pair Corralation between Perseus Mining and Coloplast
Assuming the 90 days horizon Perseus Mining Limited is expected to generate 1.7 times more return on investment than Coloplast. However, Perseus Mining is 1.7 times more volatile than Coloplast A. It trades about 0.05 of its potential returns per unit of risk. Coloplast A is currently generating about -0.14 per unit of risk. If you would invest 221.00 in Perseus Mining Limited on April 18, 2025 and sell it today you would earn a total of 12.00 from holding Perseus Mining Limited or generate 5.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.36% |
| Values | Daily Returns |
Perseus Mining Limited vs. Coloplast A
Performance |
| Timeline |
| Perseus Mining |
| Coloplast A |
Perseus Mining and Coloplast Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Perseus Mining and Coloplast
The main advantage of trading using opposite Perseus Mining and Coloplast positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Perseus Mining position performs unexpectedly, Coloplast 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 Coloplast will offset losses from the drop in Coloplast's long position.| Perseus Mining vs. Dynacor Gold Mines | Perseus Mining vs. Orezone Gold Corp | Perseus Mining vs. Equinox Gold Corp | Perseus Mining vs. AngloGold Ashanti plc |
| Coloplast vs. Straumann Holding AG | Coloplast vs. Hoya Corp | Coloplast vs. EssilorLuxottica Socit anonyme | Coloplast vs. Essilor International SA |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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