Correlation Between Gfl Environmental and Cable One
Can any of the company-specific risk be diversified away by investing in both Gfl Environmental and Cable One 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 Cable One 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 Cable One, you can compare the effects of market volatilities on Gfl Environmental and Cable One 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 Cable One. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gfl Environmental and Cable One.
Diversification Opportunities for Gfl Environmental and Cable One
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Gfl and Cable is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Gfl Environmental Holdings and Cable One in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cable One 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 Cable One. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cable One has no effect on the direction of Gfl Environmental i.e., Gfl Environmental and Cable One go up and down completely randomly.
Pair Corralation between Gfl Environmental and Cable One
Considering the 90-day investment horizon Gfl Environmental Holdings is expected to generate 0.65 times more return on investment than Cable One. However, Gfl Environmental Holdings is 1.55 times less risky than Cable One. It trades about 0.11 of its potential returns per unit of risk. Cable One is currently generating about -0.02 per unit of risk. If you would invest 2,866 in Gfl Environmental Holdings on August 26, 2024 and sell it today you would earn a total of 1,722 from holding Gfl Environmental Holdings or generate 60.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gfl Environmental Holdings vs. Cable One
Performance |
| Timeline |
| Gfl Environmental |
| Cable One |
Gfl Environmental and Cable One Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gfl Environmental and Cable One
The main advantage of trading using opposite Gfl Environmental and Cable One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gfl Environmental position performs unexpectedly, Cable One 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 Cable One will offset losses from the drop in Cable One's long position.| Gfl Environmental vs. Clean Harbors | Gfl Environmental vs. Waste Connections | Gfl Environmental vs. Republic Services | Gfl Environmental vs. Casella Waste Systems |
| Cable One vs. Liberty Global PLC | Cable One vs. Liberty Global PLC | Cable One vs. Liberty Broadband Srs | Cable One vs. Shenandoah Telecommunications Co |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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