Correlation Between Gfl Environmental and Quebecor
Can any of the company-specific risk be diversified away by investing in both Gfl Environmental and Quebecor 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 Quebecor 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 Quebecor, you can compare the effects of market volatilities on Gfl Environmental and Quebecor 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 Quebecor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gfl Environmental and Quebecor.
Diversification Opportunities for Gfl Environmental and Quebecor
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gfl and Quebecor is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Gfl Environmental Holdings and Quebecor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quebecor 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 Quebecor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quebecor has no effect on the direction of Gfl Environmental i.e., Gfl Environmental and Quebecor go up and down completely randomly.
Pair Corralation between Gfl Environmental and Quebecor
Assuming the 90 days trading horizon Gfl Environmental Holdings is expected to under-perform the Quebecor. But the stock apears to be less risky and, when comparing its historical volatility, Gfl Environmental Holdings is 2.8 times less risky than Quebecor. The stock trades about -0.14 of its potential returns per unit of risk. The Quebecor is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 3,199 in Quebecor on October 28, 2024 and sell it today you would lose (61.00) from holding Quebecor or give up 1.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gfl Environmental Holdings vs. Quebecor
Performance |
| Timeline |
| Gfl Environmental |
| Quebecor |
Gfl Environmental and Quebecor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gfl Environmental and Quebecor
The main advantage of trading using opposite Gfl Environmental and Quebecor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gfl Environmental position performs unexpectedly, Quebecor 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 Quebecor will offset losses from the drop in Quebecor's long position.| Gfl Environmental vs. Waste Connections | Gfl Environmental vs. TFI International | Gfl Environmental vs. WSP Global | Gfl Environmental vs. Dye Durham |
| Quebecor vs. Canlan Ice Sports | Quebecor vs. VIP Entertainment Technologies | Quebecor vs. NextSource Materials | Quebecor vs. NeuPath Health |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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