Correlation Between VCI Global and Perma Fix

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

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

Diversification Opportunities for VCI Global and Perma Fix

-0.89

Correlation Coefficient

VCI Global  Perma Fix

Pay attention - limited upside

The 3 months correlation between VCI and Perma is -0.89. Overlapping area represents the amount of risk that can be diversified away by holding VCI Global Limited and Perma Fix Environmental Svcs in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Perma Fix Environmental and VCI Global 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 VCI Global Limited are associated (or correlated) with Perma Fix. 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 VCI Global i.e., VCI Global and Perma Fix go up and down completely randomly.

Pair Corralation between VCI Global and Perma Fix

Given the investment horizon of 90 days VCI Global Limited is expected to under-perform the Perma Fix. In addition to that, VCI Global is 3.6 times more volatile than Perma Fix Environmental Svcs. It trades about -0.25 of its total potential returns per unit of risk. Perma Fix Environmental Svcs is currently generating about 0.12 per unit of volatility. If you would invest  939.00  in Perma Fix Environmental Svcs on May 9, 2025 and sell it today you would earn a total of  174.00  from holding Perma Fix Environmental Svcs or generate 18.53% return on investment over 90 days.

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

VCI Global Limited  vs.  Perma Fix Environmental Svcs

VCI Global Limited

Risk-Adjusted Performance

Weakest

Over the last 90 days VCI Global Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's forward indicators remain nearly stable which may send shares a bit higher in September 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Perma Fix Environmental

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Perma Fix Environmental Svcs are ranked lower than 9 (%) 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.

Pair Trading with VCI Global and Perma Fix

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

The idea behind VCI Global Limited and Perma Fix Environmental Svcs 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.

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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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.