Correlation Between GFL ENVIRONM and ABO GROUP
Can any of the company-specific risk be diversified away by investing in both GFL ENVIRONM and ABO GROUP 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 ABO GROUP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GFL ENVIRONM and ABO GROUP ENVIRONMENT, you can compare the effects of market volatilities on GFL ENVIRONM and ABO GROUP 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 ABO GROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of GFL ENVIRONM and ABO GROUP.
Diversification Opportunities for GFL ENVIRONM and ABO GROUP
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GFL and ABO is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding GFL ENVIRONM and ABO GROUP ENVIRONMENT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ABO GROUP ENVIRONMENT 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 ABO GROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ABO GROUP ENVIRONMENT has no effect on the direction of GFL ENVIRONM i.e., GFL ENVIRONM and ABO GROUP go up and down completely randomly.
Pair Corralation between GFL ENVIRONM and ABO GROUP
Assuming the 90 days horizon GFL ENVIRONM is expected to generate 0.99 times more return on investment than ABO GROUP. However, GFL ENVIRONM is 1.01 times less risky than ABO GROUP. It trades about 0.07 of its potential returns per unit of risk. ABO GROUP ENVIRONMENT is currently generating about -0.04 per unit of risk. If you would invest 2,994 in GFL ENVIRONM on August 29, 2024 and sell it today you would earn a total of 1,426 from holding GFL ENVIRONM or generate 47.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GFL ENVIRONM vs. ABO GROUP ENVIRONMENT
Performance |
| Timeline |
| GFL ENVIRONM |
| ABO GROUP ENVIRONMENT |
GFL ENVIRONM and ABO GROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GFL ENVIRONM and ABO GROUP
The main advantage of trading using opposite GFL ENVIRONM and ABO GROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GFL ENVIRONM position performs unexpectedly, ABO GROUP 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 ABO GROUP will offset losses from the drop in ABO GROUP's long position.| GFL ENVIRONM vs. Waste Management | GFL ENVIRONM vs. Waste Connections | GFL ENVIRONM vs. Superior Plus Corp | GFL ENVIRONM vs. SIVERS SEMICONDUCTORS AB |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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