Correlation Between Clean Harbors and Susglobal Energy
Can any of the company-specific risk be diversified away by investing in both Clean Harbors and Susglobal Energy 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 Susglobal Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Clean Harbors and Susglobal Energy Corp, you can compare the effects of market volatilities on Clean Harbors and Susglobal Energy 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 Susglobal Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clean Harbors and Susglobal Energy.
Diversification Opportunities for Clean Harbors and Susglobal Energy
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Clean and Susglobal is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Clean Harbors and Susglobal Energy Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Susglobal Energy Corp 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 Susglobal Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Susglobal Energy Corp has no effect on the direction of Clean Harbors i.e., Clean Harbors and Susglobal Energy go up and down completely randomly.
Pair Corralation between Clean Harbors and Susglobal Energy
Considering the 90-day investment horizon Clean Harbors is expected to generate 4.33 times less return on investment than Susglobal Energy. But when comparing it to its historical volatility, Clean Harbors is 5.0 times less risky than Susglobal Energy. It trades about 0.03 of its potential returns per unit of risk. Susglobal Energy Corp is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 2.58 in Susglobal Energy Corp on August 29, 2024 and sell it today you would lose (0.38) from holding Susglobal Energy Corp or give up 14.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Clean Harbors vs. Susglobal Energy Corp
Performance |
| Timeline |
| Clean Harbors |
| Susglobal Energy Corp |
Clean Harbors and Susglobal Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clean Harbors and Susglobal Energy
The main advantage of trading using opposite Clean Harbors and Susglobal Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clean Harbors position performs unexpectedly, Susglobal Energy 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 Susglobal Energy will offset losses from the drop in Susglobal Energy'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 |
| Susglobal Energy vs. Republic Services | Susglobal Energy vs. Waste Connections | Susglobal Energy vs. Clean Harbors | Susglobal Energy 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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