Correlation Between Perion Network and Super League

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

By analyzing existing cross correlation between Perion Network and Super League Enterprise, you can compare the effects of market volatilities on Perion Network and Super League 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 Perion Network with a short position of Super League. Check out your portfolio center. Please also check ongoing floating volatility patterns of Perion Network and Super League.

Diversification Opportunities for Perion Network and Super League

-0.23

Correlation Coefficient

Perion Network  Super League

Very good diversification

The 3 months correlation between Perion and Super is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Perion Network and Super League Enterprise in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Super League Enterprise and Perion Network 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 Perion Network are associated (or correlated) with Super League. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Super League Enterprise has no effect on the direction of Perion Network i.e., Perion Network and Super League go up and down completely randomly.

Pair Corralation between Perion Network and Super League

Given the investment horizon of 90 days Perion Network is expected to under-perform the Super League. But the stock apears to be less risky and, when comparing its historical volatility, Perion Network is 2.51 times less risky than Super League. The stock trades about -0.01 of its potential returns per unit of risk. The Super League Enterprise is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  54.00  in Super League Enterprise on September 27, 2024 and sell it today you would earn a total of  6.00  from holding Super League Enterprise or generate 11.11% return on investment over 90 days.

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

Perion Network  vs.  Super League Enterprise

Perion Network

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Perion Network are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong basic indicators, Perion Network is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Super League Enterprise

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Super League Enterprise are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak essential indicators, Super League may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Perion Network and Super League

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

The idea behind Perion Network and Super League Enterprise 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.