Correlation Between Gfl Environmental and Universal Stainless
Can any of the company-specific risk be diversified away by investing in both Gfl Environmental and Universal Stainless 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 Universal Stainless 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 Universal Stainless Alloy, you can compare the effects of market volatilities on Gfl Environmental and Universal Stainless 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 Universal Stainless. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gfl Environmental and Universal Stainless.
Diversification Opportunities for Gfl Environmental and Universal Stainless
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Gfl and Universal is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Gfl Environmental Holdings and Universal Stainless Alloy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Universal Stainless Alloy 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 Universal Stainless. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Universal Stainless Alloy has no effect on the direction of Gfl Environmental i.e., Gfl Environmental and Universal Stainless go up and down completely randomly.
Pair Corralation between Gfl Environmental and Universal Stainless
Considering the 90-day investment horizon Gfl Environmental Holdings is expected to under-perform the Universal Stainless. In addition to that, Gfl Environmental is 3.51 times more volatile than Universal Stainless Alloy. It trades about -0.1 of its total potential returns per unit of risk. Universal Stainless Alloy is currently generating about 0.59 per unit of volatility. If you would invest 4,368 in Universal Stainless Alloy on November 2, 2024 and sell it today you would earn a total of 131.00 from holding Universal Stainless Alloy or generate 3.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 78.95% |
| Values | Daily Returns |
Gfl Environmental Holdings vs. Universal Stainless Alloy
Performance |
| Timeline |
| Gfl Environmental |
| Universal Stainless Alloy |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
Gfl Environmental and Universal Stainless Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gfl Environmental and Universal Stainless
The main advantage of trading using opposite Gfl Environmental and Universal Stainless positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gfl Environmental position performs unexpectedly, Universal Stainless 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 Universal Stainless will offset losses from the drop in Universal Stainless' long position.| Gfl Environmental vs. Clean Harbors | Gfl Environmental vs. Waste Connections | Gfl Environmental vs. Republic Services | Gfl Environmental vs. Casella Waste Systems |
| Universal Stainless vs. Olympic Steel | Universal Stainless vs. Outokumpu Oyj ADR | Universal Stainless vs. Usinas Siderurgicas de | Universal Stainless vs. POSCO 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |