Correlation Between GFL ENVIRONM and Gateway Real
Can any of the company-specific risk be diversified away by investing in both GFL ENVIRONM and Gateway Real 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 Gateway Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GFL ENVIRONM and Gateway Real Estate, you can compare the effects of market volatilities on GFL ENVIRONM and Gateway Real 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 Gateway Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of GFL ENVIRONM and Gateway Real.
Diversification Opportunities for GFL ENVIRONM and Gateway Real
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between GFL and Gateway is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding GFL ENVIRONM and Gateway Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gateway Real Estate 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 Gateway Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gateway Real Estate has no effect on the direction of GFL ENVIRONM i.e., GFL ENVIRONM and Gateway Real go up and down completely randomly.
Pair Corralation between GFL ENVIRONM and Gateway Real
Assuming the 90 days horizon GFL ENVIRONM is expected to under-perform the Gateway Real. But the stock apears to be less risky and, when comparing its historical volatility, GFL ENVIRONM is 26.77 times less risky than Gateway Real. The stock trades about -0.1 of its potential returns per unit of risk. The Gateway Real Estate is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 49.00 in Gateway Real Estate on November 7, 2024 and sell it today you would earn a total of 43.00 from holding Gateway Real Estate or generate 87.76% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 91.3% |
Values | Daily Returns |
GFL ENVIRONM vs. Gateway Real Estate
Performance |
Timeline |
GFL ENVIRONM |
Gateway Real Estate |
GFL ENVIRONM and Gateway Real Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with GFL ENVIRONM and Gateway Real
The main advantage of trading using opposite GFL ENVIRONM and Gateway Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GFL ENVIRONM position performs unexpectedly, Gateway Real 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 Gateway Real will offset losses from the drop in Gateway Real's long position.GFL ENVIRONM vs. PennyMac Mortgage Investment | GFL ENVIRONM vs. WT OFFSHORE | GFL ENVIRONM vs. MEDCAW INVESTMENTS LS 01 | GFL ENVIRONM vs. SLR Investment Corp |
Gateway Real vs. Deutsche Wohnen SE | Gateway Real vs. Gateway Real Estate | Gateway Real vs. Gateway Real Estate | Gateway Real vs. TIMES CHINA HLDGS |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |