Correlation Between Gfl Environmental and Senvest Capital
Can any of the company-specific risk be diversified away by investing in both Gfl Environmental and Senvest Capital 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 Senvest Capital 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 Senvest Capital, you can compare the effects of market volatilities on Gfl Environmental and Senvest Capital 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 Senvest Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gfl Environmental and Senvest Capital.
Diversification Opportunities for Gfl Environmental and Senvest Capital
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Gfl and Senvest is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Gfl Environmental Holdings and Senvest Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Senvest Capital 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 Senvest Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Senvest Capital has no effect on the direction of Gfl Environmental i.e., Gfl Environmental and Senvest Capital go up and down completely randomly.
Pair Corralation between Gfl Environmental and Senvest Capital
Assuming the 90 days trading horizon Gfl Environmental Holdings is expected to generate 1.4 times more return on investment than Senvest Capital. However, Gfl Environmental is 1.4 times more volatile than Senvest Capital. It trades about 0.05 of its potential returns per unit of risk. Senvest Capital is currently generating about 0.03 per unit of risk. If you would invest 4,202 in Gfl Environmental Holdings on October 28, 2024 and sell it today you would earn a total of 1,856 from holding Gfl Environmental Holdings or generate 44.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gfl Environmental Holdings vs. Senvest Capital
Performance |
| Timeline |
| Gfl Environmental |
| Senvest Capital |
Gfl Environmental and Senvest Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gfl Environmental and Senvest Capital
The main advantage of trading using opposite Gfl Environmental and Senvest Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gfl Environmental position performs unexpectedly, Senvest Capital 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 Senvest Capital will offset losses from the drop in Senvest Capital's long position.| Gfl Environmental vs. Waste Connections | Gfl Environmental vs. TFI International | Gfl Environmental vs. WSP Global | Gfl Environmental vs. Dye Durham |
| Senvest Capital vs. Millennium Silver Corp | Senvest Capital vs. Verizon Communications CDR | Senvest Capital vs. Andlauer Healthcare Gr | Senvest Capital vs. Nicola Mining |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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