Correlation Between Perseus Mining and Contextlogic

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

Diversification Opportunities for Perseus Mining and Contextlogic

0.0

Correlation Coefficient

Perseus Mining  Contextlogic

Pay attention - limited upside

The 3 months correlation between Perseus and Contextlogic is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Perseus Mining Limited and Contextlogic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Contextlogic 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 Contextlogic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Contextlogic has no effect on the direction of Perseus Mining i.e., Perseus Mining and Contextlogic go up and down completely randomly.

Pair Corralation between Perseus Mining and Contextlogic

Assuming the 90 days horizon Perseus Mining Limited is expected to generate 0.65 times more return on investment than Contextlogic. However, Perseus Mining Limited is 1.54 times less risky than Contextlogic. It trades about 0.07 of its potential returns per unit of risk. Contextlogic is currently generating about 0.04 per unit of risk. If you would invest  211.00  in Perseus Mining Limited on April 29, 2025 and sell it today you would earn a total of  20.00  from holding Perseus Mining Limited or generate 9.48% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	61.29%
Values	Daily Returns

Perseus Mining Limited  vs.  Contextlogic

Perseus Mining

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Perseus Mining Limited are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Perseus Mining may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Contextlogic

Risk-Adjusted Performance

Insignificant

Over the last 90 days Contextlogic has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather conflicting technical and fundamental indicators, Contextlogic may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Perseus Mining and Contextlogic

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

The idea behind Perseus Mining Limited and Contextlogic 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.

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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.