Correlation Between Super Micro and Perseus Mining

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

By analyzing existing cross correlation between Super Micro Computer and Perseus Mining Limited, you can compare the effects of market volatilities on Super Micro and Perseus Mining 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 Super Micro with a short position of Perseus Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Super Micro and Perseus Mining.

Diversification Opportunities for Super Micro and Perseus Mining

-0.02

Correlation Coefficient

Super Micro  Perseus Mining

Good diversification

The 3 months correlation between Super and Perseus is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Super Micro Computer and Perseus Mining Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Perseus Mining and Super Micro 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 Super Micro Computer are associated (or correlated) with Perseus Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Perseus Mining has no effect on the direction of Super Micro i.e., Super Micro and Perseus Mining go up and down completely randomly.

Pair Corralation between Super Micro and Perseus Mining

Given the investment horizon of 90 days Super Micro Computer is expected to generate 1.82 times more return on investment than Perseus Mining. However, Super Micro is 1.82 times more volatile than Perseus Mining Limited. It trades about 0.22 of its potential returns per unit of risk. Perseus Mining Limited is currently generating about 0.01 per unit of risk. If you would invest  3,217  in Super Micro Computer on May 5, 2025 and sell it today you would earn a total of  2,447  from holding Super Micro Computer or generate 76.06% return on investment over 90 days.

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

Super Micro Computer  vs.  Perseus Mining Limited

Super Micro Computer

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Super Micro Computer are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak fundamental indicators, Super Micro demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Perseus Mining

Risk-Adjusted Performance

Very Weak

Over the last 90 days Perseus Mining Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Perseus Mining is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Super Micro and Perseus Mining

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

The idea behind Super Micro Computer and Perseus Mining Limited 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.