Correlation Between Boat Rocker and Gfl Environmental
Can any of the company-specific risk be diversified away by investing in both Boat Rocker and Gfl Environmental 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 Boat Rocker and Gfl Environmental into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boat Rocker Media and Gfl Environmental Holdings, you can compare the effects of market volatilities on Boat Rocker and Gfl Environmental 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 Boat Rocker with a short position of Gfl Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boat Rocker and Gfl Environmental.
Diversification Opportunities for Boat Rocker and Gfl Environmental
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Boat and Gfl is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Boat Rocker Media and Gfl Environmental Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gfl Environmental and Boat Rocker 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 Boat Rocker Media are associated (or correlated) with Gfl Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gfl Environmental has no effect on the direction of Boat Rocker i.e., Boat Rocker and Gfl Environmental go up and down completely randomly.
Pair Corralation between Boat Rocker and Gfl Environmental
Assuming the 90 days trading horizon Boat Rocker Media is expected to under-perform the Gfl Environmental. In addition to that, Boat Rocker is 2.93 times more volatile than Gfl Environmental Holdings. It trades about -0.13 of its total potential returns per unit of risk. Gfl Environmental Holdings is currently generating about 0.27 per unit of volatility. If you would invest 5,356 in Gfl Environmental Holdings on August 25, 2024 and sell it today you would earn a total of 1,055 from holding Gfl Environmental Holdings or generate 19.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Boat Rocker Media vs. Gfl Environmental Holdings
Performance |
| Timeline |
| Boat Rocker Media |
| Gfl Environmental |
Boat Rocker and Gfl Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boat Rocker and Gfl Environmental
The main advantage of trading using opposite Boat Rocker and Gfl Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boat Rocker position performs unexpectedly, Gfl Environmental 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 Gfl Environmental will offset losses from the drop in Gfl Environmental's long position.| Boat Rocker vs. Thunderbird Entertainment Group | Boat Rocker vs. VerticalScope Holdings | Boat Rocker vs. WildBrain | Boat Rocker vs. Kits Eyecare |
| Gfl Environmental vs. Waste Connections | Gfl Environmental vs. TFI International | Gfl Environmental vs. WSP Global | Gfl Environmental vs. Dye Durham |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |