Correlation Between Clean Harbors and Critic Clothing
Can any of the company-specific risk be diversified away by investing in both Clean Harbors and Critic Clothing 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 Clean Harbors and Critic Clothing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Clean Harbors and Critic Clothing, you can compare the effects of market volatilities on Clean Harbors and Critic Clothing 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 Clean Harbors with a short position of Critic Clothing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clean Harbors and Critic Clothing.
Diversification Opportunities for Clean Harbors and Critic Clothing
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Clean and Critic is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Clean Harbors and Critic Clothing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Critic Clothing and Clean Harbors 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 Clean Harbors are associated (or correlated) with Critic Clothing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Critic Clothing has no effect on the direction of Clean Harbors i.e., Clean Harbors and Critic Clothing go up and down completely randomly.
Pair Corralation between Clean Harbors and Critic Clothing
Considering the 90-day investment horizon Clean Harbors is expected to generate 2.52 times less return on investment than Critic Clothing. But when comparing it to its historical volatility, Clean Harbors is 9.73 times less risky than Critic Clothing. It trades about 0.03 of its potential returns per unit of risk. Critic Clothing is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 7.38 in Critic Clothing on August 29, 2024 and sell it today you would lose (4.38) from holding Critic Clothing or give up 59.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Clean Harbors vs. Critic Clothing
Performance |
| Timeline |
| Clean Harbors |
| Critic Clothing |
Clean Harbors and Critic Clothing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clean Harbors and Critic Clothing
The main advantage of trading using opposite Clean Harbors and Critic Clothing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clean Harbors position performs unexpectedly, Critic Clothing 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 Critic Clothing will offset losses from the drop in Critic Clothing's long position.| Clean Harbors vs. Waste Connections | Clean Harbors vs. Casella Waste Systems | Clean Harbors vs. Waste Management | Clean Harbors vs. Gfl Environmental Holdings |
| Critic Clothing vs. Republic Services | Critic Clothing vs. Waste Connections | Critic Clothing vs. Clean Harbors | Critic Clothing vs. Gfl Environmental Holdings |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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