Correlation Between Gfl Environmental and Eestech
Can any of the company-specific risk be diversified away by investing in both Gfl Environmental and Eestech 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 Eestech 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 Eestech, you can compare the effects of market volatilities on Gfl Environmental and Eestech 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 Eestech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gfl Environmental and Eestech.
Diversification Opportunities for Gfl Environmental and Eestech
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gfl and Eestech is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Gfl Environmental Holdings and Eestech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eestech 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 Eestech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eestech has no effect on the direction of Gfl Environmental i.e., Gfl Environmental and Eestech go up and down completely randomly.
Pair Corralation between Gfl Environmental and Eestech
If you would invest 4,169 in Gfl Environmental Holdings on August 24, 2024 and sell it today you would earn a total of 408.00 from holding Gfl Environmental Holdings or generate 9.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Gfl Environmental Holdings vs. Eestech
Performance |
| Timeline |
| Gfl Environmental |
| Eestech |
Gfl Environmental and Eestech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gfl Environmental and Eestech
The main advantage of trading using opposite Gfl Environmental and Eestech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gfl Environmental position performs unexpectedly, Eestech 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 Eestech will offset losses from the drop in Eestech's long position.| Gfl Environmental vs. Clean Harbors | Gfl Environmental vs. Waste Connections | Gfl Environmental vs. Republic Services | Gfl Environmental vs. Casella Waste Systems |
| Eestech vs. Element Solutions | Eestech vs. Orion Engineered Carbons | Eestech vs. Minerals Technologies | Eestech vs. Ingevity Corp |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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