Correlation Between BacTech Environmental and Heritage-Crystal
Can any of the company-specific risk be diversified away by investing in both BacTech Environmental and Heritage-Crystal 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 BacTech Environmental and Heritage-Crystal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BacTech Environmental and Heritage Crystal Clean, you can compare the effects of market volatilities on BacTech Environmental and Heritage-Crystal 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 BacTech Environmental with a short position of Heritage-Crystal. Check out your portfolio center. Please also check ongoing floating volatility patterns of BacTech Environmental and Heritage-Crystal.
Diversification Opportunities for BacTech Environmental and Heritage-Crystal
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BacTech and Heritage-Crystal is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding BacTech Environmental and Heritage Crystal Clean in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heritage Crystal Clean and BacTech Environmental 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 BacTech Environmental are associated (or correlated) with Heritage-Crystal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Heritage Crystal Clean has no effect on the direction of BacTech Environmental i.e., BacTech Environmental and Heritage-Crystal go up and down completely randomly.
Pair Corralation between BacTech Environmental and Heritage-Crystal
If you would invest 5.99 in BacTech Environmental on September 1, 2024 and sell it today you would lose (3.50) from holding BacTech Environmental or give up 58.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.37% |
| Values | Daily Returns |
BacTech Environmental vs. Heritage Crystal Clean
Performance |
| Timeline |
| BacTech Environmental |
| Heritage Crystal Clean |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
BacTech Environmental and Heritage-Crystal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BacTech Environmental and Heritage-Crystal
The main advantage of trading using opposite BacTech Environmental and Heritage-Crystal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BacTech Environmental position performs unexpectedly, Heritage-Crystal 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 Heritage-Crystal will offset losses from the drop in Heritage-Crystal's long position.| BacTech Environmental vs. BluMetric Environmental | BacTech Environmental vs. Agilyx AS | BacTech Environmental vs. EcoPlus | BacTech Environmental vs. BQE Water |
| Heritage-Crystal vs. Casella Waste Systems | Heritage-Crystal vs. Montrose Environmental Grp | Heritage-Crystal vs. Clean Harbors | Heritage-Crystal vs. Waste Connections |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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