Correlation Between ANGLER GAMING and GFL ENVIRONM
Can any of the company-specific risk be diversified away by investing in both ANGLER GAMING and GFL ENVIRONM 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 ANGLER GAMING and GFL ENVIRONM into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ANGLER GAMING PLC and GFL ENVIRONM, you can compare the effects of market volatilities on ANGLER GAMING and GFL ENVIRONM 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 ANGLER GAMING with a short position of GFL ENVIRONM. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANGLER GAMING and GFL ENVIRONM.
Diversification Opportunities for ANGLER GAMING and GFL ENVIRONM
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ANGLER and GFL is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding ANGLER GAMING PLC and GFL ENVIRONM in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GFL ENVIRONM and ANGLER GAMING 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 ANGLER GAMING PLC are associated (or correlated) with GFL ENVIRONM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GFL ENVIRONM has no effect on the direction of ANGLER GAMING i.e., ANGLER GAMING and GFL ENVIRONM go up and down completely randomly.
Pair Corralation between ANGLER GAMING and GFL ENVIRONM
Assuming the 90 days horizon ANGLER GAMING is expected to generate 1.23 times less return on investment than GFL ENVIRONM. In addition to that, ANGLER GAMING is 2.43 times more volatile than GFL ENVIRONM. It trades about 0.02 of its total potential returns per unit of risk. GFL ENVIRONM is currently generating about 0.07 per unit of volatility. If you would invest 3,094 in GFL ENVIRONM on September 4, 2024 and sell it today you would earn a total of 1,426 from holding GFL ENVIRONM or generate 46.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.66% |
| Values | Daily Returns |
ANGLER GAMING PLC vs. GFL ENVIRONM
Performance |
| Timeline |
| ANGLER GAMING PLC |
| GFL ENVIRONM |
ANGLER GAMING and GFL ENVIRONM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANGLER GAMING and GFL ENVIRONM
The main advantage of trading using opposite ANGLER GAMING and GFL ENVIRONM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANGLER GAMING position performs unexpectedly, GFL ENVIRONM 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 GFL ENVIRONM will offset losses from the drop in GFL ENVIRONM's long position.| ANGLER GAMING vs. Automatic Data Processing | ANGLER GAMING vs. Warner Music Group | ANGLER GAMING vs. DATAGROUP SE | ANGLER GAMING vs. Information Services International Dentsu |
| GFL ENVIRONM vs. Waste Management | GFL ENVIRONM vs. Republic Services | GFL ENVIRONM vs. Waste Connections | GFL ENVIRONM vs. Veolia Environnement SA |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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