Correlation Between Gfl Environmental and LanzaTech Global
Can any of the company-specific risk be diversified away by investing in both Gfl Environmental and LanzaTech Global 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 LanzaTech Global 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 LanzaTech Global, you can compare the effects of market volatilities on Gfl Environmental and LanzaTech Global 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 LanzaTech Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gfl Environmental and LanzaTech Global.
Diversification Opportunities for Gfl Environmental and LanzaTech Global
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gfl and LanzaTech is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Gfl Environmental Holdings and LanzaTech Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LanzaTech Global 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 LanzaTech Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LanzaTech Global has no effect on the direction of Gfl Environmental i.e., Gfl Environmental and LanzaTech Global go up and down completely randomly.
Pair Corralation between Gfl Environmental and LanzaTech Global
Considering the 90-day investment horizon Gfl Environmental Holdings is expected to generate 0.32 times more return on investment than LanzaTech Global. However, Gfl Environmental Holdings is 3.08 times less risky than LanzaTech Global. It trades about 0.04 of its potential returns per unit of risk. LanzaTech Global is currently generating about -0.07 per unit of risk. If you would invest 3,875 in Gfl Environmental Holdings on August 28, 2024 and sell it today you would earn a total of 803.00 from holding Gfl Environmental Holdings or generate 20.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gfl Environmental Holdings vs. LanzaTech Global
Performance |
| Timeline |
| Gfl Environmental |
| LanzaTech Global |
Gfl Environmental and LanzaTech Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gfl Environmental and LanzaTech Global
The main advantage of trading using opposite Gfl Environmental and LanzaTech Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gfl Environmental position performs unexpectedly, LanzaTech Global 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 LanzaTech Global will offset losses from the drop in LanzaTech Global's long position.| Gfl Environmental vs. Genpact Limited | Gfl Environmental vs. Broadridge Financial Solutions | Gfl Environmental vs. First Advantage Corp | Gfl Environmental vs. Franklin Covey |
| LanzaTech Global vs. Casella Waste Systems | LanzaTech Global vs. Montrose Environmental Grp | LanzaTech Global vs. Clean Harbors | LanzaTech Global vs. Gfl Environmental Holdings |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |