Correlation Between Perseus Mining and ENTERPRISE

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

Diversification Opportunities for Perseus Mining and ENTERPRISE

0.0

Correlation Coefficient

Perseus Mining  ENTERPRISE

Pay attention - limited upside

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

Pair Corralation between Perseus Mining and ENTERPRISE

If you would invest  227.00  in Perseus Mining Limited on July 3, 2025 and sell it today you would earn a total of  91.00  from holding Perseus Mining Limited or generate 40.09% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.61%
Values	Daily Returns

Perseus Mining Limited  vs.  ENTERPRISE PRODS OPER

Perseus Mining

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Perseus Mining Limited are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Perseus Mining reported solid returns over the last few months and may actually be approaching a breakup point.

ENTERPRISE PRODS OPER

Risk-Adjusted Performance

Weakest

Over the last 90 days ENTERPRISE PRODS OPER has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, ENTERPRISE is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Perseus Mining and ENTERPRISE

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

The idea behind Perseus Mining Limited and ENTERPRISE PRODS OPER 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.