Correlation Between Perma-Fix Environmental and Deutsche Bank
Can any of the company-specific risk be diversified away by investing in both Perma-Fix Environmental and Deutsche Bank 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 Perma-Fix Environmental and Deutsche Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Perma Fix Environmental Services and Deutsche Bank Aktiengesellschaft, you can compare the effects of market volatilities on Perma-Fix Environmental and Deutsche Bank 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 Perma-Fix Environmental with a short position of Deutsche Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Perma-Fix Environmental and Deutsche Bank.
Diversification Opportunities for Perma-Fix Environmental and Deutsche Bank
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Perma-Fix and Deutsche is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Perma Fix Environmental Servic and Deutsche Bank Aktiengesellscha in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Deutsche Bank Aktien and Perma-Fix Environmental 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 Perma Fix Environmental Services are associated (or correlated) with Deutsche Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Deutsche Bank Aktien has no effect on the direction of Perma-Fix Environmental i.e., Perma-Fix Environmental and Deutsche Bank go up and down completely randomly.
Pair Corralation between Perma-Fix Environmental and Deutsche Bank
Assuming the 90 days trading horizon Perma Fix Environmental Services is expected to generate 2.3 times more return on investment than Deutsche Bank. However, Perma-Fix Environmental is 2.3 times more volatile than Deutsche Bank Aktiengesellschaft. It trades about 0.09 of its potential returns per unit of risk. Deutsche Bank Aktiengesellschaft is currently generating about 0.06 per unit of risk. If you would invest 340.00 in Perma Fix Environmental Services on August 29, 2024 and sell it today you would earn a total of 1,030 from holding Perma Fix Environmental Services or generate 302.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Perma Fix Environmental Servic vs. Deutsche Bank Aktiengesellscha
Performance |
| Timeline |
| Perma Fix Environmental |
| Deutsche Bank Aktien |
Perma-Fix Environmental and Deutsche Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Perma-Fix Environmental and Deutsche Bank
The main advantage of trading using opposite Perma-Fix Environmental and Deutsche Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Perma-Fix Environmental position performs unexpectedly, Deutsche Bank 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 Deutsche Bank will offset losses from the drop in Deutsche Bank's long position.| Perma-Fix Environmental vs. Superior Plus Corp | Perma-Fix Environmental vs. NMI Holdings | Perma-Fix Environmental vs. Origin Agritech | Perma-Fix Environmental vs. SIVERS SEMICONDUCTORS AB |
| Deutsche Bank vs. Superior Plus Corp | Deutsche Bank vs. NMI Holdings | Deutsche Bank vs. Origin Agritech | Deutsche Bank vs. SIVERS SEMICONDUCTORS AB |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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