Correlation Between Advantage Solutions and IperionX Limited

Can any of the company-specific risk be diversified away by investing in both Advantage Solutions and IperionX Limited 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 Advantage Solutions and IperionX Limited into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Advantage Solutions and IperionX Limited American, you can compare the effects of market volatilities on Advantage Solutions and IperionX Limited 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 Advantage Solutions with a short position of IperionX Limited. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advantage Solutions and IperionX Limited.

Diversification Opportunities for Advantage Solutions and IperionX Limited

-0.71

Correlation Coefficient

Advantage Solutions  IperionX Limited

Pay attention - limited upside

The 3 months correlation between Advantage and IperionX is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Advantage Solutions and IperionX Limited American in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IperionX Limited American and Advantage Solutions 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 Advantage Solutions are associated (or correlated) with IperionX Limited. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IperionX Limited American has no effect on the direction of Advantage Solutions i.e., Advantage Solutions and IperionX Limited go up and down completely randomly.

Pair Corralation between Advantage Solutions and IperionX Limited

Assuming the 90 days horizon Advantage Solutions is expected to under-perform the IperionX Limited. In addition to that, Advantage Solutions is 3.94 times more volatile than IperionX Limited American. It trades about -0.02 of its total potential returns per unit of risk. IperionX Limited American is currently generating about 0.18 per unit of volatility. If you would invest  3,389  in IperionX Limited American on July 21, 2025 and sell it today you would earn a total of  1,716  from holding IperionX Limited American or generate 50.63% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	90.77%
Values	Daily Returns

Advantage Solutions  vs.  IperionX Limited American

Advantage Solutions

Risk-Adjusted Performance

Weakest

Over the last 90 days Advantage Solutions has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in November 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

IperionX Limited American

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in IperionX Limited American are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, IperionX Limited showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Advantage Solutions and IperionX Limited

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

The idea behind Advantage Solutions and IperionX Limited American 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.