Correlation Between Perseus Mining and Faction Investment

Can any of the company-specific risk be diversified away by investing in both Perseus Mining and Faction Investment 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 Faction Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Perseus Mining and Faction Investment Group, you can compare the effects of market volatilities on Perseus Mining and Faction Investment 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 Faction Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Perseus Mining and Faction Investment.

Diversification Opportunities for Perseus Mining and Faction Investment

-0.28

Correlation Coefficient

Perseus Mining  Faction Investment

Very good diversification

The 3 months correlation between Perseus and Faction is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Perseus Mining and Faction Investment Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Faction Investment 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 are associated (or correlated) with Faction Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Faction Investment has no effect on the direction of Perseus Mining i.e., Perseus Mining and Faction Investment go up and down completely randomly.

Pair Corralation between Perseus Mining and Faction Investment

Assuming the 90 days trading horizon Perseus Mining is expected to under-perform the Faction Investment. In addition to that, Perseus Mining is 1.96 times more volatile than Faction Investment Group. It trades about -0.02 of its total potential returns per unit of risk. Faction Investment Group is currently generating about 0.13 per unit of volatility. If you would invest  10.00  in Faction Investment Group on May 7, 2025 and sell it today you would earn a total of  1.00  from holding Faction Investment Group or generate 10.0% return on investment over 90 days.

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

Perseus Mining  vs.  Faction Investment Group

Perseus Mining

Risk-Adjusted Performance

Very Weak

Over the last 90 days Perseus Mining has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Perseus Mining is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Faction Investment

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Faction Investment Group are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unfluctuating basic indicators, Faction Investment may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Perseus Mining and Faction Investment

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

The idea behind Perseus Mining and Faction Investment Group 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.