Correlation Between Perma Fix and Utah Medical

Can any of the company-specific risk be diversified away by investing in both Perma Fix and Utah Medical 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 Utah Medical 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 Utah Medical Products, you can compare the effects of market volatilities on Perma Fix and Utah Medical 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 Utah Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Perma Fix and Utah Medical.

Diversification Opportunities for Perma Fix and Utah Medical

0.78

Correlation Coefficient

Perma Fix  Utah Medical

Poor diversification

The 3 months correlation between Perma and Utah is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Perma Fix Environmental Svcs and Utah Medical Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Utah Medical Products 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 Utah Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Utah Medical Products has no effect on the direction of Perma Fix i.e., Perma Fix and Utah Medical go up and down completely randomly.

Pair Corralation between Perma Fix and Utah Medical

Given the investment horizon of 90 days Perma Fix Environmental Svcs is expected to generate 2.09 times more return on investment than Utah Medical. However, Perma Fix is 2.09 times more volatile than Utah Medical Products. It trades about 0.11 of its potential returns per unit of risk. Utah Medical Products is currently generating about 0.07 per unit of risk. If you would invest  897.00  in Perma Fix Environmental Svcs on May 4, 2025 and sell it today you would earn a total of  164.00  from holding Perma Fix Environmental Svcs or generate 18.28% return on investment over 90 days.

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

Perma Fix Environmental Svcs  vs.  Utah Medical Products

Perma Fix Environmental

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Perma Fix Environmental Svcs are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite fairly unsteady basic indicators, Perma Fix demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Utah Medical Products

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Utah Medical Products are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound primary indicators, Utah Medical is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Perma Fix and Utah Medical

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

The idea behind Perma Fix Environmental Svcs and Utah Medical Products 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.