Correlation Between GFL ENVIRONM and ANGLER GAMING
Can any of the company-specific risk be diversified away by investing in both GFL ENVIRONM and ANGLER GAMING 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 GFL ENVIRONM and ANGLER GAMING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GFL ENVIRONM and ANGLER GAMING PLC, you can compare the effects of market volatilities on GFL ENVIRONM and ANGLER GAMING 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 GFL ENVIRONM with a short position of ANGLER GAMING. Check out your portfolio center. Please also check ongoing floating volatility patterns of GFL ENVIRONM and ANGLER GAMING.
Diversification Opportunities for GFL ENVIRONM and ANGLER GAMING
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between GFL and ANGLER is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding GFL ENVIRONM and ANGLER GAMING PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANGLER GAMING PLC and GFL ENVIRONM 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 GFL ENVIRONM are associated (or correlated) with ANGLER GAMING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ANGLER GAMING PLC has no effect on the direction of GFL ENVIRONM i.e., GFL ENVIRONM and ANGLER GAMING go up and down completely randomly.
Pair Corralation between GFL ENVIRONM and ANGLER GAMING
Assuming the 90 days horizon GFL ENVIRONM is expected to generate 0.41 times more return on investment than ANGLER GAMING. However, GFL ENVIRONM is 2.43 times less risky than ANGLER GAMING. It trades about 0.07 of its potential returns per unit of risk. ANGLER GAMING PLC is currently generating about 0.02 per unit of risk. 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 |
GFL ENVIRONM vs. ANGLER GAMING PLC
Performance |
| Timeline |
| GFL ENVIRONM |
| ANGLER GAMING PLC |
GFL ENVIRONM and ANGLER GAMING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GFL ENVIRONM and ANGLER GAMING
The main advantage of trading using opposite GFL ENVIRONM and ANGLER GAMING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GFL ENVIRONM position performs unexpectedly, ANGLER GAMING 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 ANGLER GAMING will offset losses from the drop in ANGLER GAMING's long position.| GFL ENVIRONM vs. Waste Management | GFL ENVIRONM vs. Republic Services | GFL ENVIRONM vs. Waste Connections | GFL ENVIRONM vs. Veolia Environnement SA |
| ANGLER GAMING vs. Automatic Data Processing | ANGLER GAMING vs. Warner Music Group | ANGLER GAMING vs. DATAGROUP SE | ANGLER GAMING vs. Information Services International Dentsu |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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