Correlation Between Caseys General and GFL ENVIRONM(SUBVTSH
Can any of the company-specific risk be diversified away by investing in both Caseys General and GFL ENVIRONM(SUBVTSH 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 Caseys General and GFL ENVIRONM(SUBVTSH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Caseys General Stores and GFL ENVIRONM, you can compare the effects of market volatilities on Caseys General and GFL ENVIRONM(SUBVTSH 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 Caseys General with a short position of GFL ENVIRONM(SUBVTSH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Caseys General and GFL ENVIRONM(SUBVTSH.
Diversification Opportunities for Caseys General and GFL ENVIRONM(SUBVTSH
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Caseys and GFL is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Caseys General Stores and GFL ENVIRONM in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GFL ENVIRONM(SUBVTSH and Caseys General 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 Caseys General Stores are associated (or correlated) with GFL ENVIRONM(SUBVTSH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GFL ENVIRONM(SUBVTSH has no effect on the direction of Caseys General i.e., Caseys General and GFL ENVIRONM(SUBVTSH go up and down completely randomly.
Pair Corralation between Caseys General and GFL ENVIRONM(SUBVTSH
Assuming the 90 days trading horizon Caseys General is expected to generate 2.43 times less return on investment than GFL ENVIRONM(SUBVTSH. In addition to that, Caseys General is 1.26 times more volatile than GFL ENVIRONM. It trades about 0.1 of its total potential returns per unit of risk. GFL ENVIRONM is currently generating about 0.32 per unit of volatility. If you would invest 4,000 in GFL ENVIRONM on November 28, 2024 and sell it today you would earn a total of 400.00 from holding GFL ENVIRONM or generate 10.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Caseys General Stores vs. GFL ENVIRONM
Performance |
| Timeline |
| Caseys General Stores |
| GFL ENVIRONM(SUBVTSH |
Caseys General and GFL ENVIRONM(SUBVTSH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Caseys General and GFL ENVIRONM(SUBVTSH
The main advantage of trading using opposite Caseys General and GFL ENVIRONM(SUBVTSH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Caseys General position performs unexpectedly, GFL ENVIRONM(SUBVTSH 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 ENVIRONM(SUBVTSH will offset losses from the drop in GFL ENVIRONM(SUBVTSH's long position.| Caseys General vs. TIANDE CHEMICAL | Caseys General vs. Eastman Chemical | Caseys General vs. Transportadora de Gas | Caseys General vs. GUILD ESPORTS PLC |
| GFL ENVIRONM(SUBVTSH vs. STMICROELECTRONICS | GFL ENVIRONM(SUBVTSH vs. Northern Data AG | GFL ENVIRONM(SUBVTSH vs. Arrow Electronics | GFL ENVIRONM(SUBVTSH vs. AOI Electronics Co |
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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