Correlation Between Gfl Environmental and Mawson Gold
Can any of the company-specific risk be diversified away by investing in both Gfl Environmental and Mawson Gold 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 Mawson Gold 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 Mawson Gold Limited, you can compare the effects of market volatilities on Gfl Environmental and Mawson Gold 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 Mawson Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gfl Environmental and Mawson Gold.
Diversification Opportunities for Gfl Environmental and Mawson Gold
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gfl and Mawson is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Gfl Environmental Holdings and Mawson Gold Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mawson Gold Limited 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 Mawson Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mawson Gold Limited has no effect on the direction of Gfl Environmental i.e., Gfl Environmental and Mawson Gold go up and down completely randomly.
Pair Corralation between Gfl Environmental and Mawson Gold
Assuming the 90 days trading horizon Gfl Environmental Holdings is expected to under-perform the Mawson Gold. But the stock apears to be less risky and, when comparing its historical volatility, Gfl Environmental Holdings is 4.19 times less risky than Mawson Gold. The stock trades about -0.33 of its potential returns per unit of risk. The Mawson Gold Limited is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 298.00 in Mawson Gold Limited on October 24, 2024 and sell it today you would earn a total of 31.00 from holding Mawson Gold Limited or generate 10.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gfl Environmental Holdings vs. Mawson Gold Limited
Performance |
| Timeline |
| Gfl Environmental |
| Mawson Gold Limited |
Gfl Environmental and Mawson Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gfl Environmental and Mawson Gold
The main advantage of trading using opposite Gfl Environmental and Mawson Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gfl Environmental position performs unexpectedly, Mawson Gold 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 Mawson Gold will offset losses from the drop in Mawson Gold's long position.| Gfl Environmental vs. Waste Connections | Gfl Environmental vs. TFI International | Gfl Environmental vs. WSP Global | Gfl Environmental vs. Dye Durham |
| Mawson Gold vs. Agnico Eagle Mines | Mawson Gold vs. Barrick Gold Corp | Mawson Gold vs. Wheaton Precious Metals | Mawson Gold vs. Franco Nevada |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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