Correlation Between Ocumetics Technology and Perseus Mining

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

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

Diversification Opportunities for Ocumetics Technology and Perseus Mining

0.56

Correlation Coefficient

Ocumetics Technology  Perseus Mining

Very weak diversification

The 3 months correlation between Ocumetics and Perseus is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Ocumetics Technology Corp and Perseus Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Perseus Mining and Ocumetics Technology 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 Ocumetics Technology Corp 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 Ocumetics Technology i.e., Ocumetics Technology and Perseus Mining go up and down completely randomly.

Pair Corralation between Ocumetics Technology and Perseus Mining

Assuming the 90 days horizon Ocumetics Technology Corp is expected to generate 1.16 times more return on investment than Perseus Mining. However, Ocumetics Technology is 1.16 times more volatile than Perseus Mining. It trades about 0.2 of its potential returns per unit of risk. Perseus Mining is currently generating about 0.08 per unit of risk. If you would invest  28.00  in Ocumetics Technology Corp on April 25, 2025 and sell it today you would earn a total of  11.00  from holding Ocumetics Technology Corp or generate 39.29% return on investment over 90 days.

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

Ocumetics Technology Corp  vs.  Perseus Mining

Ocumetics Technology Corp

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Ocumetics Technology Corp are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of fairly inconsistent basic indicators, Ocumetics Technology showed solid returns over the last few months and may actually be approaching a breakup point.

Perseus Mining

Risk-Adjusted Performance

Modest

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

Pair Trading with Ocumetics Technology and Perseus Mining

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

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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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.