Correlation Between DAX Index and Perma-Fix Environmental
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By analyzing existing cross correlation between DAX Index and Perma Fix Environmental Services, you can compare the effects of market volatilities on DAX Index and Perma-Fix Environmental 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 DAX Index with a short position of Perma-Fix Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Perma-Fix Environmental.
Diversification Opportunities for DAX Index and Perma-Fix Environmental
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between DAX and Perma-Fix is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Perma Fix Environmental Servic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Perma Fix Environmental and DAX Index 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 DAX Index are associated (or correlated) with Perma-Fix Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Perma Fix Environmental has no effect on the direction of DAX Index i.e., DAX Index and Perma-Fix Environmental go up and down completely randomly.
Pair Corralation between DAX Index and Perma-Fix Environmental
Assuming the 90 days trading horizon DAX Index is expected to generate 0.17 times more return on investment than Perma-Fix Environmental. However, DAX Index is 5.93 times less risky than Perma-Fix Environmental. It trades about 0.2 of its potential returns per unit of risk. Perma Fix Environmental Services is currently generating about 0.0 per unit of risk. If you would invest 1,914,785 in DAX Index on September 4, 2024 and sell it today you would earn a total of 78,577 from holding DAX Index or generate 4.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. Perma Fix Environmental Servic
Performance |
| Timeline |
DAX Index and Perma-Fix Environmental Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Perma Fix Environmental Services
Pair trading matchups for Perma-Fix Environmental
Pair Trading with DAX Index and Perma-Fix Environmental
The main advantage of trading using opposite DAX Index and Perma-Fix Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Perma-Fix Environmental 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 Perma-Fix Environmental will offset losses from the drop in Perma-Fix Environmental's long position.| DAX Index vs. LION ONE METALS | DAX Index vs. KENNAMETAL INC | DAX Index vs. HYATT HOTELS A | DAX Index vs. Zijin Mining Group |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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