Correlation Between Casella Waste and Green Mountain
Can any of the company-specific risk be diversified away by investing in both Casella Waste and Green Mountain 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 Casella Waste and Green Mountain into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Casella Waste Systems and Green Mountain Devel, you can compare the effects of market volatilities on Casella Waste and Green Mountain 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 Casella Waste with a short position of Green Mountain. Check out your portfolio center. Please also check ongoing floating volatility patterns of Casella Waste and Green Mountain.
Diversification Opportunities for Casella Waste and Green Mountain
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Casella and Green is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Casella Waste Systems and Green Mountain Devel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Green Mountain Devel and Casella Waste 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 Casella Waste Systems are associated (or correlated) with Green Mountain. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Green Mountain Devel has no effect on the direction of Casella Waste i.e., Casella Waste and Green Mountain go up and down completely randomly.
Pair Corralation between Casella Waste and Green Mountain
If you would invest 7,897 in Casella Waste Systems on September 3, 2024 and sell it today you would earn a total of 3,496 from holding Casella Waste Systems or generate 44.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Casella Waste Systems vs. Green Mountain Devel
Performance |
| Timeline |
| Casella Waste Systems |
| Green Mountain Devel |
Casella Waste and Green Mountain Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Casella Waste and Green Mountain
The main advantage of trading using opposite Casella Waste and Green Mountain positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Casella Waste position performs unexpectedly, Green Mountain 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 Green Mountain will offset losses from the drop in Green Mountain's long position.| Casella Waste vs. Clean Harbors | Casella Waste vs. Montrose Environmental Grp | Casella Waste vs. Republic Services | Casella Waste vs. Waste Connections |
| Green Mountain vs. LiCycle Holdings Corp | Green Mountain vs. Casella Waste Systems | Green Mountain vs. Perma Fix Environmental Svcs | Green Mountain vs. Montrose Environmental Grp |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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