Correlation Between Gfl Environmental and ANTA Sports
Can any of the company-specific risk be diversified away by investing in both Gfl Environmental and ANTA Sports 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 ANTA Sports 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 ANTA Sports Products, you can compare the effects of market volatilities on Gfl Environmental and ANTA Sports 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 ANTA Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gfl Environmental and ANTA Sports.
Diversification Opportunities for Gfl Environmental and ANTA Sports
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Gfl and ANTA is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Gfl Environmental Holdings and ANTA Sports Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANTA Sports Products 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 ANTA Sports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ANTA Sports Products has no effect on the direction of Gfl Environmental i.e., Gfl Environmental and ANTA Sports go up and down completely randomly.
Pair Corralation between Gfl Environmental and ANTA Sports
Considering the 90-day investment horizon Gfl Environmental Holdings is expected to generate 0.69 times more return on investment than ANTA Sports. However, Gfl Environmental Holdings is 1.44 times less risky than ANTA Sports. It trades about 0.37 of its potential returns per unit of risk. ANTA Sports Products is currently generating about -0.21 per unit of risk. If you would invest 4,009 in Gfl Environmental Holdings on August 27, 2024 and sell it today you would earn a total of 579.00 from holding Gfl Environmental Holdings or generate 14.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gfl Environmental Holdings vs. ANTA Sports Products
Performance |
| Timeline |
| Gfl Environmental |
| ANTA Sports Products |
Gfl Environmental and ANTA Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gfl Environmental and ANTA Sports
The main advantage of trading using opposite Gfl Environmental and ANTA Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gfl Environmental position performs unexpectedly, ANTA Sports 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 ANTA Sports will offset losses from the drop in ANTA Sports' long position.| Gfl Environmental vs. Clean Harbors | Gfl Environmental vs. Waste Connections | Gfl Environmental vs. Republic Services | Gfl Environmental vs. Casella Waste Systems |
| ANTA Sports vs. TWC Enterprises Limited | ANTA Sports vs. ANTA Sports Products | ANTA Sports vs. Brownies Marine Group | ANTA Sports vs. Golden Heaven Group |
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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