Correlation Between Perseus Mining and NXP Semiconductors

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

Diversification Opportunities for Perseus Mining and NXP Semiconductors

0.04

Correlation Coefficient

Perseus Mining  NXP Semiconductors

Significant diversification

The 3 months correlation between Perseus and NXP is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Perseus Mining Limited and NXP Semiconductors NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NXP Semiconductors 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 NXP Semiconductors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NXP Semiconductors has no effect on the direction of Perseus Mining i.e., Perseus Mining and NXP Semiconductors go up and down completely randomly.

Pair Corralation between Perseus Mining and NXP Semiconductors

Assuming the 90 days horizon Perseus Mining is expected to generate 2.15 times less return on investment than NXP Semiconductors. In addition to that, Perseus Mining is 1.26 times more volatile than NXP Semiconductors NV. It trades about 0.06 of its total potential returns per unit of risk. NXP Semiconductors NV is currently generating about 0.16 per unit of volatility. If you would invest  15,527  in NXP Semiconductors NV on April 23, 2025 and sell it today you would earn a total of  3,823  from holding NXP Semiconductors NV or generate 24.62% return on investment over 90 days.

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

Perseus Mining Limited  vs.  NXP Semiconductors NV

Perseus Mining

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Perseus Mining Limited are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady basic indicators, Perseus Mining may actually be approaching a critical reversion point that can send shares even higher in August 2025.

NXP Semiconductors

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in NXP Semiconductors NV are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, NXP Semiconductors unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Perseus Mining and NXP Semiconductors

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

The idea behind Perseus Mining Limited and NXP Semiconductors NV 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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.