Correlation Between Charah Solutions and LiCycle Holdings
Can any of the company-specific risk be diversified away by investing in both Charah Solutions and LiCycle Holdings 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 Charah Solutions and LiCycle Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Charah Solutions and LiCycle Holdings Corp, you can compare the effects of market volatilities on Charah Solutions and LiCycle Holdings 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 Charah Solutions with a short position of LiCycle Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Charah Solutions and LiCycle Holdings.
Diversification Opportunities for Charah Solutions and LiCycle Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Charah and LiCycle is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Charah Solutions and LiCycle Holdings Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LiCycle Holdings Corp and Charah Solutions 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 Charah Solutions are associated (or correlated) with LiCycle Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LiCycle Holdings Corp has no effect on the direction of Charah Solutions i.e., Charah Solutions and LiCycle Holdings go up and down completely randomly.
Pair Corralation between Charah Solutions and LiCycle Holdings
Given the investment horizon of 90 days Charah Solutions is expected to generate 1.23 times more return on investment than LiCycle Holdings. However, Charah Solutions is 1.23 times more volatile than LiCycle Holdings Corp. It trades about 0.03 of its potential returns per unit of risk. LiCycle Holdings Corp is currently generating about -0.03 per unit of risk. If you would invest 700.00 in Charah Solutions on August 29, 2024 and sell it today you would lose (133.00) from holding Charah Solutions or give up 19.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 22.98% |
| Values | Daily Returns |
Charah Solutions vs. LiCycle Holdings Corp
Performance |
| Timeline |
| Charah Solutions |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| LiCycle Holdings Corp |
Charah Solutions and LiCycle Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Charah Solutions and LiCycle Holdings
The main advantage of trading using opposite Charah Solutions and LiCycle Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Charah Solutions position performs unexpectedly, LiCycle Holdings 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 LiCycle Holdings will offset losses from the drop in LiCycle Holdings' long position.| Charah Solutions vs. BluMetric Environmental | Charah Solutions vs. Agilyx AS | Charah Solutions vs. BacTech Environmental | Charah Solutions vs. EcoPlus |
| LiCycle Holdings vs. Casella Waste Systems | LiCycle Holdings vs. Perma Fix Environmental Svcs | LiCycle Holdings vs. Montrose Environmental Grp | LiCycle Holdings vs. LanzaTech Global |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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