Correlation Between Perseus Mining and Arbor Metals

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

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

Diversification Opportunities for Perseus Mining and Arbor Metals

-0.5

Correlation Coefficient

Perseus Mining  Arbor Metals

Very good diversification

The 3 months correlation between Perseus and Arbor is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Perseus Mining and Arbor Metals Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arbor Metals 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 are associated (or correlated) with Arbor Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arbor Metals Corp has no effect on the direction of Perseus Mining i.e., Perseus Mining and Arbor Metals go up and down completely randomly.

Pair Corralation between Perseus Mining and Arbor Metals

Assuming the 90 days trading horizon Perseus Mining is expected to generate 0.73 times more return on investment than Arbor Metals. However, Perseus Mining is 1.36 times less risky than Arbor Metals. It trades about 0.07 of its potential returns per unit of risk. Arbor Metals Corp is currently generating about -0.08 per unit of risk. If you would invest  298.00  in Perseus Mining on April 24, 2025 and sell it today you would earn a total of  28.00  from holding Perseus Mining or generate 9.4% return on investment over 90 days.

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

Perseus Mining  vs.  Arbor Metals Corp

Perseus Mining

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Perseus Mining are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, Perseus Mining may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Arbor Metals Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Arbor Metals Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in August 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with Perseus Mining and Arbor Metals

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

The idea behind Perseus Mining and Arbor Metals 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.