Correlation Between Perseus Mining and CVB Financial

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

Diversification Opportunities for Perseus Mining and CVB Financial

-0.16

Correlation Coefficient

Perseus Mining  CVB Financial

Good diversification

The 3 months correlation between Perseus and CVB is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Perseus Mining Limited and CVB Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CVB Financial Corp 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 CVB Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CVB Financial Corp has no effect on the direction of Perseus Mining i.e., Perseus Mining and CVB Financial go up and down completely randomly.

Pair Corralation between Perseus Mining and CVB Financial

Assuming the 90 days horizon Perseus Mining is expected to generate 5.02 times less return on investment than CVB Financial. In addition to that, Perseus Mining is 1.83 times more volatile than CVB Financial Corp. It trades about 0.02 of its total potential returns per unit of risk. CVB Financial Corp is currently generating about 0.16 per unit of volatility. If you would invest  1,495  in CVB Financial Corp on April 20, 2025 and sell it today you would earn a total of  255.00  from holding CVB Financial Corp or generate 17.06% return on investment over 90 days.

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

Perseus Mining Limited  vs.  CVB Financial Corp

Perseus Mining

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Perseus Mining Limited are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. 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.

CVB Financial Corp

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in CVB Financial Corp are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, CVB Financial reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Perseus Mining and CVB Financial

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

The idea behind Perseus Mining Limited and CVB Financial Corp 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.