Correlation Between Perma-Fix Environmental and LION ONE
Can any of the company-specific risk be diversified away by investing in both Perma-Fix Environmental and LION ONE 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 LION ONE 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 LION ONE METALS, you can compare the effects of market volatilities on Perma-Fix Environmental and LION ONE 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 LION ONE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Perma-Fix Environmental and LION ONE.
Diversification Opportunities for Perma-Fix Environmental and LION ONE
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Perma-Fix and LION is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Perma Fix Environmental Servic and LION ONE METALS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LION ONE METALS 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 LION ONE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LION ONE METALS has no effect on the direction of Perma-Fix Environmental i.e., Perma-Fix Environmental and LION ONE go up and down completely randomly.
Pair Corralation between Perma-Fix Environmental and LION ONE
Assuming the 90 days trading horizon Perma Fix Environmental Services is expected to generate 1.52 times more return on investment than LION ONE. However, Perma-Fix Environmental is 1.52 times more volatile than LION ONE METALS. It trades about 0.04 of its potential returns per unit of risk. LION ONE METALS is currently generating about -0.05 per unit of risk. If you would invest 1,350 in Perma Fix Environmental Services on September 1, 2024 and sell it today you would earn a total of 20.00 from holding Perma Fix Environmental Services or generate 1.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Perma Fix Environmental Servic vs. LION ONE METALS
Performance |
| Timeline |
| Perma Fix Environmental |
| LION ONE METALS |
Perma-Fix Environmental and LION ONE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Perma-Fix Environmental and LION ONE
The main advantage of trading using opposite Perma-Fix Environmental and LION ONE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Perma-Fix Environmental position performs unexpectedly, LION ONE 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 LION ONE will offset losses from the drop in LION ONE's long position.| Perma-Fix Environmental vs. Veolia Environnement SA | Perma-Fix Environmental vs. Superior Plus Corp | Perma-Fix Environmental vs. NMI Holdings | Perma-Fix Environmental vs. Origin Agritech |
| LION ONE vs. Corporate Office Properties | LION ONE vs. Eagle Materials | LION ONE vs. Plastic Omnium | LION ONE vs. KENEDIX OFFICE INV |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Transaction History View history of all your transactions and understand their impact on performance |