Correlation Between GFL ENVIRONM(SUBVTSH and SANOK RUBBER
Can any of the company-specific risk be diversified away by investing in both GFL ENVIRONM(SUBVTSH and SANOK RUBBER 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(SUBVTSH and SANOK RUBBER into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GFL ENVIRONM and SANOK RUBBER ZY, you can compare the effects of market volatilities on GFL ENVIRONM(SUBVTSH and SANOK RUBBER 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(SUBVTSH with a short position of SANOK RUBBER. Check out your portfolio center. Please also check ongoing floating volatility patterns of GFL ENVIRONM(SUBVTSH and SANOK RUBBER.
Diversification Opportunities for GFL ENVIRONM(SUBVTSH and SANOK RUBBER
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between GFL and SANOK is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding GFL ENVIRONM and SANOK RUBBER ZY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SANOK RUBBER ZY and GFL ENVIRONM(SUBVTSH 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 SANOK RUBBER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SANOK RUBBER ZY has no effect on the direction of GFL ENVIRONM(SUBVTSH i.e., GFL ENVIRONM(SUBVTSH and SANOK RUBBER go up and down completely randomly.
Pair Corralation between GFL ENVIRONM(SUBVTSH and SANOK RUBBER
Assuming the 90 days horizon GFL ENVIRONM(SUBVTSH is expected to generate 3.28 times less return on investment than SANOK RUBBER. But when comparing it to its historical volatility, GFL ENVIRONM is 1.49 times less risky than SANOK RUBBER. It trades about 0.04 of its potential returns per unit of risk. SANOK RUBBER ZY is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 177.00 in SANOK RUBBER ZY on December 10, 2024 and sell it today you would earn a total of 383.00 from holding SANOK RUBBER ZY or generate 216.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GFL ENVIRONM vs. SANOK RUBBER ZY
Performance |
| Timeline |
| GFL ENVIRONM(SUBVTSH |
| SANOK RUBBER ZY |
GFL ENVIRONM(SUBVTSH and SANOK RUBBER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GFL ENVIRONM(SUBVTSH and SANOK RUBBER
The main advantage of trading using opposite GFL ENVIRONM(SUBVTSH and SANOK RUBBER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GFL ENVIRONM(SUBVTSH position performs unexpectedly, SANOK RUBBER 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 SANOK RUBBER will offset losses from the drop in SANOK RUBBER's long position.| GFL ENVIRONM(SUBVTSH vs. MONEYSUPERMARKET | GFL ENVIRONM(SUBVTSH vs. G5 Entertainment AB | GFL ENVIRONM(SUBVTSH vs. Emperor Entertainment Hotel | GFL ENVIRONM(SUBVTSH vs. Sligro Food Group |
| SANOK RUBBER vs. GEAR4MUSIC LS 10 | SANOK RUBBER vs. Aristocrat Leisure Limited | SANOK RUBBER vs. Planet Fitness | SANOK RUBBER vs. Warner Music Group |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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