Correlation Between Perseus Mining and Marsh McLennan

Can any of the company-specific risk be diversified away by investing in both Perseus Mining and Marsh McLennan 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 Marsh McLennan 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 Marsh McLennan Companies, you can compare the effects of market volatilities on Perseus Mining and Marsh McLennan 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 Marsh McLennan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Perseus Mining and Marsh McLennan.

Diversification Opportunities for Perseus Mining and Marsh McLennan

0.24

Correlation Coefficient

Perseus Mining  Marsh McLennan

Modest diversification

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

Pair Corralation between Perseus Mining and Marsh McLennan

Assuming the 90 days horizon Perseus Mining Limited is expected to generate 2.33 times more return on investment than Marsh McLennan. However, Perseus Mining is 2.33 times more volatile than Marsh McLennan Companies. It trades about 0.04 of its potential returns per unit of risk. Marsh McLennan Companies is currently generating about -0.08 per unit of risk. If you would invest  183.00  in Perseus Mining Limited on April 23, 2025 and sell it today you would earn a total of  10.00  from holding Perseus Mining Limited or generate 5.46% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.44%
Values	Daily Returns

Perseus Mining Limited  vs.  Marsh McLennan Companies

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 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady basic indicators, Perseus Mining may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Marsh McLennan Companies

Risk-Adjusted Performance

Very Weak

Over the last 90 days Marsh McLennan Companies has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with Perseus Mining and Marsh McLennan

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

The idea behind Perseus Mining Limited and Marsh McLennan Companies 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..