Correlation Between PCI PAL and Panther Metals

Can any of the company-specific risk be diversified away by investing in both PCI PAL and Panther Metals 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 PCI PAL and Panther Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between PCI PAL PLC and Panther Metals PLC, you can compare the effects of market volatilities on PCI PAL and Panther Metals 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 PCI PAL with a short position of Panther Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of PCI PAL and Panther Metals.

Diversification Opportunities for PCI PAL and Panther Metals

0.59

Correlation Coefficient

PCI PAL  Panther Metals

Very weak diversification

The 3 months correlation between PCI and Panther is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding PCI PAL PLC and Panther Metals PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Panther Metals PLC and PCI PAL 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 PCI PAL PLC are associated (or correlated) with Panther Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Panther Metals PLC has no effect on the direction of PCI PAL i.e., PCI PAL and Panther Metals go up and down completely randomly.

Pair Corralation between PCI PAL and Panther Metals

Assuming the 90 days trading horizon PCI PAL PLC is expected to under-perform the Panther Metals. But the stock apears to be less risky and, when comparing its historical volatility, PCI PAL PLC is 4.2 times less risky than Panther Metals. The stock trades about 0.0 of its potential returns per unit of risk. The Panther Metals PLC is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  4,100  in Panther Metals PLC on April 20, 2025 and sell it today you would earn a total of  3,150  from holding Panther Metals PLC or generate 76.83% return on investment over 90 days.

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

PCI PAL PLC  vs.  Panther Metals PLC

PCI PAL PLC

Risk-Adjusted Performance

Very Weak

Over the last 90 days PCI PAL PLC has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, PCI PAL is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Panther Metals PLC

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Panther Metals PLC are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Panther Metals unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with PCI PAL and Panther Metals

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

The idea behind PCI PAL PLC and Panther Metals PLC 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.