Correlation Between Perma Fix and Virgin Galactic

Can any of the company-specific risk be diversified away by investing in both Perma Fix and Virgin Galactic 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 and Virgin Galactic into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Perma Fix Environmental Svcs and Virgin Galactic Holdings, you can compare the effects of market volatilities on Perma Fix and Virgin Galactic 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 with a short position of Virgin Galactic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Perma Fix and Virgin Galactic.

Diversification Opportunities for Perma Fix and Virgin Galactic

0.11

Correlation Coefficient

Perma Fix  Virgin Galactic

Average diversification

The 3 months correlation between Perma and Virgin is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Perma Fix Environmental Svcs and Virgin Galactic Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Virgin Galactic Holdings and Perma Fix 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 Svcs are associated (or correlated) with Virgin Galactic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Virgin Galactic Holdings has no effect on the direction of Perma Fix i.e., Perma Fix and Virgin Galactic go up and down completely randomly.

Pair Corralation between Perma Fix and Virgin Galactic

Given the investment horizon of 90 days Perma Fix is expected to generate 1.4 times less return on investment than Virgin Galactic. In addition to that, Perma Fix is 1.3 times more volatile than Virgin Galactic Holdings. It trades about 0.05 of its total potential returns per unit of risk. Virgin Galactic Holdings is currently generating about 0.09 per unit of volatility. If you would invest  297.00  in Virgin Galactic Holdings on August 9, 2025 and sell it today you would earn a total of  62.00  from holding Virgin Galactic Holdings or generate 20.88% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Perma Fix Environmental Svcs  vs.  Virgin Galactic Holdings

Perma Fix Environmental

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Perma Fix Environmental Svcs are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite fairly conflicting basic indicators, Perma Fix demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Virgin Galactic Holdings

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Virgin Galactic Holdings are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak fundamental indicators, Virgin Galactic exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Perma Fix and Virgin Galactic

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

The idea behind Perma Fix Environmental Svcs and Virgin Galactic Holdings 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.

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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.