Correlation Between Gfl Environmental and IA Financial
Can any of the company-specific risk be diversified away by investing in both Gfl Environmental and IA Financial 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 Gfl Environmental and IA Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gfl Environmental Holdings and iA Financial, you can compare the effects of market volatilities on Gfl Environmental and IA Financial 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 Gfl Environmental with a short position of IA Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gfl Environmental and IA Financial.
Diversification Opportunities for Gfl Environmental and IA Financial
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Gfl and IAG is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Gfl Environmental Holdings and iA Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iA Financial and Gfl Environmental 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 Gfl Environmental Holdings are associated (or correlated) with IA Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iA Financial has no effect on the direction of Gfl Environmental i.e., Gfl Environmental and IA Financial go up and down completely randomly.
Pair Corralation between Gfl Environmental and IA Financial
Assuming the 90 days trading horizon Gfl Environmental Holdings is expected to generate 1.42 times more return on investment than IA Financial. However, Gfl Environmental is 1.42 times more volatile than iA Financial. It trades about -0.05 of its potential returns per unit of risk. iA Financial is currently generating about -0.18 per unit of risk. If you would invest 6,517 in Gfl Environmental Holdings on October 7, 2024 and sell it today you would lose (71.00) from holding Gfl Environmental Holdings or give up 1.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gfl Environmental Holdings vs. iA Financial
Performance |
| Timeline |
| Gfl Environmental |
| iA Financial |
Gfl Environmental and IA Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gfl Environmental and IA Financial
The main advantage of trading using opposite Gfl Environmental and IA Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gfl Environmental position performs unexpectedly, IA Financial 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 IA Financial will offset losses from the drop in IA Financial's long position.| Gfl Environmental vs. Waste Connections | Gfl Environmental vs. TFI International | Gfl Environmental vs. WSP Global | Gfl Environmental vs. Dye Durham |
| IA Financial vs. Great West Lifeco | IA Financial vs. Intact Financial | IA Financial vs. IGM Financial | IA Financial vs. Sun Life Financial |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |