Correlation Between Canuc Resources and Gfl Environmental
Can any of the company-specific risk be diversified away by investing in both Canuc Resources 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 Canuc Resources and Gfl Environmental into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canuc Resources Corp and Gfl Environmental Holdings, you can compare the effects of market volatilities on Canuc Resources 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 Canuc Resources with a short position of Gfl Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canuc Resources and Gfl Environmental.
Diversification Opportunities for Canuc Resources and Gfl Environmental
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Canuc and Gfl is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Canuc Resources Corp and Gfl Environmental Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gfl Environmental and Canuc Resources 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 Canuc Resources Corp 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 Canuc Resources i.e., Canuc Resources and Gfl Environmental go up and down completely randomly.
Pair Corralation between Canuc Resources and Gfl Environmental
Assuming the 90 days horizon Canuc Resources Corp is expected to generate 5.31 times more return on investment than Gfl Environmental. However, Canuc Resources is 5.31 times more volatile than Gfl Environmental Holdings. It trades about 0.02 of its potential returns per unit of risk. Gfl Environmental Holdings is currently generating about 0.12 per unit of risk. If you would invest 10.00 in Canuc Resources Corp on September 3, 2024 and sell it today you would lose (3.00) from holding Canuc Resources Corp or give up 30.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.4% |
| Values | Daily Returns |
Canuc Resources Corp vs. Gfl Environmental Holdings
Performance |
| Timeline |
| Canuc Resources Corp |
| Gfl Environmental |
Canuc Resources and Gfl Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canuc Resources and Gfl Environmental
The main advantage of trading using opposite Canuc Resources and Gfl Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canuc Resources 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.| Canuc Resources vs. CNJ Capital Investments | Canuc Resources vs. QC Copper and | Canuc Resources vs. SalesforceCom CDR | Canuc Resources vs. Western Copper and |
| 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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